Opportunity for Yavapai Transformers: U.S. Trade Groups Urge Congress to Address Transformer Shortages

    On April 4, the U.S. Department of Energy (DOE) issued a final rule on energy efficiency standards for distribution transformers that makes some improvements over the proposed rule. However, the American Public Power Association (APPA) and other industry groups believe the final rule does not fully address the previous shortage of distribution transformers.

    In an April 22 letter to leaders of the House of Representatives and Senate Budget Committees, these groups stressed the importance of expanding domestic manufacturing capacity for distribution transformers. The shortage of new transformers and long lead times - sometimes as long as 30 months - continue to be a problem for the industry.

    The agencies noted that demand for grid components is expected to continue to grow for the foreseeable future due to factors such as replacement of aging infrastructure and investment in electrification projects such as data centers, electric vehicles, and heat pumps. Although DOE's final rule provides a manageable framework for generation, additional congressional support is still needed to ease generation constraints.

     To address supply chain issues and ensure the reliability and resilience of the electric grid, the Coalition urges Congress to provide resources to strengthen domestic manufacturing capacity. Without this support, industry lead times could increase, posing greater risk to the grid. The letter signed by APPA and several other organizations underscores their commitment to work with the Department of Energy and Congress to find sustainable solutions for distribution transformers and other critical grid components.

       The goal of these trade organizations is to work with Congress during the fiscal year 2025 appropriations process to secure resources and maintain the robustness and security of the U.S. electric grid.