PIERRE, S.D.(WNAX)- The Inflation Reduction Act passed by Congress last week contains billions of dollars for electric vehicle subsidies.

While there is concern about the utilities being able to handle the rapid growth of electric vehicles, South Dakota Public Utilities Commission Chairman Chris Nelson says there won’t be a sudden surge in the need for charging.

Nelson says there will be time for utilities to work out programs for owners of electric vehicles.

Nelson says power companies will have to work out their generation balance as more electric vehicles show up.

The new law could provide a subsidy of up to seventy-five hundred dollars toward the cost of an electric vehicle.