DOE Transformer Rule Change Eases Supply Chain Gridlock, Enhances Electricity Reliability
WASHINGTON, D.C. – The Department of Energy revised its rule on electricity distribution transformers this week, which will ease supply chain challenges and ultimately support electricity reliability and grid resilience.
U.S. Senator Sherrod Brown (D-OH) pushed for the change after speaking with Ohio’s Electric Cooperatives president and CEO, Pat O’Loughlin. Brown stated this week the DOE rule change will protect domestic production of transformers and preserve Ohio jobs.
The Department of Energy had proposed a rule that would have required all electrical distribution transformers to shift from the industry standard grain oriented electrical steel (GOES) cores to amorphous cores. This would have devastated U.S. electrical steel manufacturers – including Ohio-based Cleveland-Cliffs – and would have risked adding significant vulnerability to the nation’s grid, and threatened national security, said Brown. The new, final standards correct the major deficiencies of the proposed rule.
“Building transformers made with Ohio steel is crucial to our electric grid and our energy independence,” said Brown. “I am glad to see that the Department of Energy finally listened to Ohio’s rural communities and energy producers and made significant changes to its misguided initial standards. The final standards are a step toward keeping our critical supply chains in the United States and ensuring that our energy grids will not become dependent on foreign steel. I will keep pushing the Administration to ensure that any standards support Ohio manufacturers and Ohio workers.”
“Ohio’s Electric Cooperatives appreciates the leadership of Sen. Sherrod Brown, and bipartisan support from Congress, in urging the U.S. Department of Energy to reconsider and greatly improve this rule. The final rule is a significant improvement from the proposed rule, which would have only further exacerbated supply chain issues and threatened electric reliability. We are pleased to see a final rule that promotes continued access to electric distribution transformers as Ohio’s electric cooperatives strive to meet the rapidly growing demand for electricity in our economy,” said Pat O’Loughlin, President, and CEO of Ohio’s Electric Cooperatives.
“As the nation depends on electricity to power more of the economy, a stable distribution transformer supply chain is essential to maintaining reliability and meeting growing demand. DOE’s final rule is much improved over its proposal, which would have upended the entire market for distribution transformers at a time when manufacturers could not keep up with demand for this critical equipment,” said Louis Finkel, Senior Vice President of Government Relations, National Rural Electric Cooperative Association, NRECA.
Read full news release from U.S. Senator Sherrod Brown.
