A coalition of electric utility, labor, and industry groups is rallying behind a bipartisan effort to address the shortage of distribution system transformers in the United States. Concerns over a potential exacerbation of the shortage due to proposed stricter efficiency standards by the U.S. Department of Energy prompted the coalition to send a letter to U.S. senators on March 5, urging their support for compromise legislation.

The proposed legislation, titled the Distribution Transformer Efficiency and Supply Chain Reliability Act, aims to stabilize the transformer supply chain by gradually implementing new energy efficiency requirements. Notably, the bill seeks to maintain opportunities for the use of highly-efficient GOES cores, a crucial component in transformer manufacturing, alongside other materials like amorphous steel cores.

Senators Ted Cruz of Texas and Sherrod Brown of Ohio are spearheading the legislative initiative, emphasizing the importance of striking a balance between efficiency standards and ensuring a steady supply chain for domestic manufacturers. The coalition backing the bill includes major industry players such as the Edison Electric Institute, American Public Power Association, and the National Rural Electric Cooperative Association.

Recent developments indicate a growing focus on expanding production capacity for amorphous core transformers in the United States. Investments by companies like CorePower Magnetics and Howard Industries, as well as strategic acquisitions such as Central Moloney's purchase of Cam Tran Co., highlight efforts to bolster domestic manufacturing capabilities.

The proposed legislation and ongoing industry investments underscore a concerted effort to address transformer shortages while advancing energy efficiency goals. With the Department of Energy poised to finalize new efficiency standards, stakeholders are optimistic about the potential benefits for consumers, estimating savings of approximately $15 billion over 30 years.

Source: utilitydive.com