
Pasadena Water and Power (PWP) finds itself grappling with formidable challenges as supply chain disruptions reverberate across the electrical power and water supply domains.
In a report to be presented at the Municipal Services Committee meeting this week, PWP officials will shed light on the impact of global manufacturing disruptions, intensified by the pandemic, on essential materials crucial for the utility's operations. The aftermath of the pandemic-induced manufacturing slowdown, coupled with surging prices of materials like crude oil, copper, steel, and aluminum, has led to heightened costs and prolonged lead times for PWP.
Among the challenges outlined in the report, extreme weather events have redirected wooden utility poles, a staple for PWP, to disaster-affected areas. Environmental regulations and new treatment protocols have initiated a one-year phase-out period for current pole manufacturers, contributing to increased post-pandemic pole prices and longer lead times. PWP faces a significant setback in its voltage conversion project due to these challenges.
Transformer and switching equipment shortages further compound PWP's predicament, with manufacturers at full capacity and rising demand from larger utilities. Reluctance to commit to long-term fixed-price contracts has resulted in soaring transformer prices and extended lead times. The ban on Sulfur Hexafluoride usage exacerbates the switch shortage, leading to increased prices and prolonged lead times.
PWP is also confronted with delays in acquiring specialty vehicles, particularly bucket trucks, due to semiconductor shortages. The utility is diligently implementing mitigating strategies, including exploring alternative pole materials, entering new contracts for overseas transformer manufacturing, and increasing inventory levels. Public participation is encouraged at the Municipal Services Committee meeting to gather valuable input for addressing these challenges.
Source: pasadenanow.com