Lewes BPW shelves EV charging stations, car

Lewes Board of Public Works officials have shelved a proposal to add electric vehicle charging stations in the city and the purchase of an electric vehicle, citing concerns with the long-term financial outlook of the utility.

After hearing a grim financial report from board Treasurer Jack Lesher earlier in the Aug. 24 meeting, President C. Wendell Alfred said the time to add EV charging stations and purchase an electric car for BPW staff may be in the future.

Lesher explained the BPW's reserve funds have declined, falling from $19 million in 2012 to $12 million in 2016, with $6 million spent to pay off a loan. Lesher said depreciation of BPW assets also affects the reserve funds because replacing an asset could cost much more than its original purchase price. The BPW already allocated $15 million for capital improvements projects over the next five years, and those projects are paid for out of reserve funds, he said.

Lesher said the rate structure is being evaluated in order to help build cash to pay for anticipated improvements and to maintain profitability.

“I wanted the board members to become aware that we can't be complacent, and we have to pay attention,” he said. “I'm not saying we're not managing our money well, but that we need to tighten up a bit and not be frivolous with our spending.”

Lesher said he'd prefer to make future capital improvements without borrowing money, but the board could go in that direction if need be.

Lesher's presentation left Alfred with a sour taste.

“I feel a little uncomfortable after listening to Jack tonight,” Alfred said. “We now have to conserve.”

Paul Evalds of Lewes-based Avatar Instruments recently approached the BPW about paying for the equipment for three charging stations – one Tesla-specific and two universal – estimated at $3,650. He only asked that the BPW pay for the construction, an estimated cost of $6,000. To complement the charging stations, the BPW also considered purchasing an electric vehicle for General Manager Darrin Gordon. EVs carry a much higher price tag than charging equipment. Gordon estimated a Nissan Leaf at $28,000 after rebates and a used Tesla at $43,000. At full charge, the Tesla travels about 207 miles compared to 107 for the Leaf. One of Gordon's concerns with a Leaf is the distance he travels for a monthly meeting in Smyrna.

BPW member A. Thomas Owen said the Leaf was not a good option.

“I don't want you running out of electricity halfway from here to Dover,” he said. “The extension cord doesn't go that far.”

Owen said if the BPW were to move forward with buying an EV, he'd prefer to see it used locally as a pool vehicle for employees working in town. He added that the EV battery technology is rapidly improving and EVs will soon be able to travel much longer distances.

BPW member Pres Lee, a proponent of electric cars and charging stations, said the idea of adding charging stations now is to stay ahead of the EV boom.

“I think electric cars are the wave of the future,” he said. “This wasn't so much about how many electric vehicles we have in town today. There are more this year than there were last year, and next year there will be more.”

He said buying an EV for BPW staff would be more about sending a message to the community.

“They're much more green in terms of energy consumption, exhaust and everything else,” he said. “And they're much cheaper to run.”

Alfred said the board is not abandoning the idea of adding charging stations or buying a electric vehicle, but putting it on the back burner for future consideration.