REPORT: Medium‑ and Heavy‑Duty Truck Electrification Can Help Stabilize or Lower Household Electricity Bills

New analysis shows Class 6-8 truck electrification puts neutral to downward pressure on utility rates in California and Georgia

WASHINGTON--(BUSINESS WIRE)--Powering America’s Commercial Transportation (PACT), a coalition focused on accelerating the deployment of nationwide charging infrastructure for medium- and heavy-duty electric trucks, today released a new report finding that increased electricity sales from medium‑ and heavy‑duty (M/HD) vehicle electrification applies neutral to downward pressure on residential electricity rates over time in studied California (PG&E) and Georgia (Georgia Power) utility service territories.

The analysis, commissioned in partnership with the Edison Electric Institute (EEI), and conducted by Energy and Environmental Economics (E3), looks at how demand from M/HD electrification could impact electric utility rates in California and Georgia in 2028 and 2035. By isolating the impact of new M/HD load, it evaluates how different charging behaviors and infrastructure cost scenarios could shape outcomes for ratepayers.

This is one of the first studies of its kind to translate freight electrification into ratepayer outcomes using regulator recognized cost allocation and ratemaking frameworks, providing a more direct view into how grid investments impact customer bills. The analysis is based on low adoption scenarios and draws on publicly available data for system costs, marginal costs, and load forecasts. Where data gaps exist, particularly in Georgia, it applies established methodologies using comparable datasets to ensure a consistent, transparent approach.

Key findings include:

• M/HD charging can result in stable or lower residential rates in most scenarios: Increased electricity sales from M/HD charging generally offsets the cost of new infrastructure in modeled scenarios, putting downward pressure on utility rates in California and Georgia.
• Ratepayer savings are modest, but positive: The analysis shows potential savings of up to approximately $20 per year for residential customers in California by 2035, with smaller impacts in Georgia.
• System cost impacts are limited: Incremental utility investments associated with M/HD electrification remain a small share of total system costs. Compared to other large loads, like data centers, that require significant new transmission and distribution infrastructure, M/HD demand can often be integrated with more targeted upgrades, enabling new revenue with lower system risk and downward pressure on rates.

Rate impacts depend on planning and cost allocation
The study finds that outcomes hinge on how M/HD demand is integrated into the system and how costs are allocated across customer classes: when infrastructure investments align with load growth and cost allocations are updated accordingly, electrification can increase system utilization and put downward pressure on residential utility rates.

Freight electrification presents lower planning risk than other large loads
Unlike other emerging sources of large electricity demand, M/HD load is tied to established freight activity and deployment timelines, making geographic demand more predictable from a planning standpoint. This reduces the risk of investing in grid infrastructure ahead of uncertain or unmaterialized demand.

“PACT members regularly engage with utilities and regulators who are focused on how electrification may affect residential electricity rates, and those concerns often shape how projects move forward,” said Dawn Fenton, PACT Board Chair. “This analysis shows that MHD charging is a sound investment for the grid—when planned and integrated effectively, it can deliver benefits for all ratepayers.”

The report identifies several planning and policy factors that influence residential rate outcomes, including transmission and distribution upgrade costs, ratemaking, tariff design and cost responsibility, and proactive coordination. It highlights tools such as managed charging, time‑of‑use and subscription‑based tariffs, and phased infrastructure upgrades that can help reduce peak impacts and limit the risk of upward rate pressure. As utilities plan for growing demand from transportation electrification, the findings offer practical guidance for integrating M/HD load while maintaining reliability and affordability for residential customers.

This report, “Electric Rate Impacts of Medium and Heavy Duty Vehicle Electrification Investments”, adds to PACT’s broader set of resources designed to help utilities, policymakers, and industry stakeholders better understand and plan for medium‑ and heavy‑duty electrification.

To learn more about PACT, visit https://www.pactcoalition.org.

About PACT
Powering America’s Commercial Transportation (PACT) is a cross-industry coalition focused on accelerating the deployment of medium- and heavy-duty (M/HD) charging infrastructure. It brings together fleets, vehicle manufacturers, charging providers, utilities, and policymakers to improve coordination, inform policy, and address the real-world challenges that impact deployment at scale. By advancing practical, market-based solutions that enable reliable, cost-effective charging where and when it’s needed, PACT is working to close the gap between vehicle adoption and grid readiness. Through education, advocacy, and stakeholder engagement, the coalition helps ensure infrastructure is ready to support the growing demand for commercial electrification. To learn more about PACT or inquire about becoming a member, visit www.pactcoalition.org and follow us on LinkedIn.