Power Companies Need To Get Ready For Electric Cars Says Report

One of the things that President Obama has been working on since he took office is bailing out the ailing auto industry. The poor economy hit automakers very hard and the government had to bail some of the larger US carmakers out to prevent them from going out of business. One of the key technologies that the automakers are working on that helped them land federal funds are hybrid and electric vehicles.

These types of vehicles are in demand from Washington and consumers because they reduce pollution and the need for foreign oil. The plug-in hybrid and electric vehicles will put an additional strain on the electrical grid though. A new report has been issued that claims electric companies need to upgrade their networks to prepare for the new onslaught of plug-in vehicles.

The fear is that the increased use of electricity in homes will lead to blown transformers and tripped circuits if the system isn't upgraded. Autoblog reports that one thing working for the electric companies is the high cost of most hybrid and electric vehicles. With some cars going as high as $40,000, the companies can use demographic info to decide what neighborhoods and cities to upgrade first. Presumably, the more affluent areas are more likely to use more power than poor areas.