Electric vehicle (EV) charging couples the operation of power and traffic networks. Specifically, the power network determines the charging price at various locations, while EVs on the traffic network optimize the charging power given the price, acting as price-takers. We model such decision-making processes by a bilevel program, with the power network at the upper-level and the traffic network at the lower-level. However, since the two networks are managed by separate entities and the charging expense term, calculated as the product of charging price and charging demand, is nonlinear. Solving the bilevel program is nontrivial. To overcome these challenges, we derive the charging demand function using multiparametric programming theory. This function establishes a piecewise linear relationship between the charging price and the optimal charging power, enabling the power network operator to manage EV charging power independently while accounting for the coupling between the two networks. With the derived function, we are also able to replace the nonlinear charging expense term with a piecewise quadratic one, thus guaranteeing solution optimality. Our numerical studies demonstrate that different traffic demands can have an impact on charging patterns and the power network can effectively incentivize charging at low-price nodes through price setting.

submitted to IEEE Transactions on Smart Grid