CU Discusses EV Charging Station Benefits

By Ray Birch

EAST LANSING, Mich.—One credit union that’s installing EV charging stations for member and non-member use believes the step, while a revenue producer, will do more for the cooperative as a means to keep it relevant.

The $7.7-billion Michigan State University FCU is set to become one of the first credit unions in the nation to work with Tetto 5G (see related story) to install EV charging stations at one of its locations. CEO April Clobes said the pilot program will begin sometime this quarter.

“Our board is very focused on ensuring that we look at member behavior and trends and needs so we offer products and services that will be relevant for them as their behaviors change,” Clobes told CUToday.info. “And with that comes a little bit of risk. I tell everybody I want our credit union to live another 86 years, and if I don't look forward to see what members’ needs are, they won't choose us. They'll choose other places and then we won't be in business 86 years from now. That's the north star for us.”

In 2018, the credit union was one of the first in the nation to install EV charging stations at one of its branches. At the time, the chargers were installed mainly for staff usage and for anyone visiting its main location.

Finding a Need

“The initial charging station decision really related to employees coming to work and having a place to charge their vehicles during the day,” Clobes said. “We live in Michigan, and if you drive an electric vehicle—especially in the dead of winter—you may find the need to charge.”

Clobes said that during the pandemic, when many of her staff were not required to come into the office, she would drive in and see local residents using the charging stations.

“We also have a very lovely natural setting at our headquarters campus that has a three-mile walking path. So, we attracted a lot of people during the pandemic,” she said.

All of that made Clobes aware of just how much of a need there was locally for EV charging stations. She also pointed to government support that has motivated more consumers to consider electric vehicles as well as the public’s growing acceptance of the non-internal combustion engine vehicles.

“As a result, there may not be enough places right now to charge EVs,” Clobes said. “There are gas stations on about every major corner, but nothing close to that yet for electric vehicles.”

April Clobes

Participating in Pilot

Clobes said she began talking with contacts at (the now former) CUNA Strategic Services and Tetto 5G about the growth of 5G communication networks and the use of “mini cell towers.”

“They said with the smaller towers, which is what is installed with a Tetto 5G charging site, they can get charging stations into credit unions faster now,” she said. “Tetto 5G asked if we would be a pilot, and I said we would.”

Clobes emphasized the mini cell towers are what makes installing the charging stations much easier at many locations, since the chargers need to connect to the Internet. Allowing cell carriers to install the mini tower—about the size of a small flagpole in height, and a little bit wider—on the CU’s lot also brings with it a monthly lease income from the cell carriers that is paid to Tetto 5G and then shared with the CU.

Free to Use

“We can utilize that money for some of other initiatives,” added Clobes, who noted MSUFCU’s first charging stations have been free to anyone who used them.

The CEO said she believes installing the charging stations and mini cell towers will provide local communities with not only more charging stations, but also better cell service.

“That's why we said yes to pilot this program,” Clobes said.

How big does the credit union hope its charging station network will become? Clobes said she currently has no projections.

“We're just going to see how it goes, and we'll go from there,” she said. “It probably isn't feasible at every branch, because we have some branches in urban areas where there is no physical space, such as a downtown location, to put in a cell tower. But in branches where we own some property and have a reasonable land mass available…And, where there is a lot of parking space. I envision this possibly being in the majority of our branch locations, but it’s not only my decision, it's the cell carrier’s decision as well.”

Making a Use Case

Clobes said if the pilot goes well, and if MSUFCU is able to can usage of the chargers, she will have a case for chargers at other branches.

“Everything that we do should be for members, and members shouldn't subsidize non-members,” said Clobes about the new charging station model that will be free only for members. “When that card swipe happens at the charging station we'll know that is one of our issued cards and then there would be no charge.”

CMSUFCU has opted for Tetto 5G’s lease program, where the EV charging company installs one to three chargers at the CU and then pays the cooperative $75 to $100 per month.

Another option is a revenue-sharing agreement with the charging company, where a credit union would take a percentage of the monthly revenue the chargers generate. Or a credit union could undertake to purchase and install all of the EV equipment and the data lines to connect to the Internet, although that is considered the least likely option, CUToday.info has been told.

Becoming More Relevant

“I view this as something we can do to be even more relevant for members and employees,” said Clobes. “More of our employees have electric cars and we have more members with the EVs, as well. So, how do we make sure we're keeping engaged and that we show support for changing behaviors? We talk a lot about being relevant for members—you know every day means we're changing and adapting and bringing new products and services to them.

“I think it's great to be able to say you can stop at our branch and charge your car, come in and do your transactions,” she continued. “Members might come to the branch versus going somewhere else to charge. Or, they’ll see the free charging as a member benefit, and lead to greater goodwill for the credit union.”