Powering Strong Communities
Reliability

DOE Final Rule on Energy Efficiency Standards for Distribution Transformers Responsive to Industry Concerns

Like What You Are Reading?

Please take a few minutes to let us know what type of industry news and information is most meaningful to you, what topics you’re interested in, and how you prefer to access this information.

The Department of Energy on April 4 released its final rule on energy efficiency standards for distribution transformers.

The final rule appears to be an improvement from the proposed rule whereby the new efficiency standard could be met with only 25 percent of new transformers using energy-efficient amorphous steel cores, the American Public Power Association said.

The remaining 75 percent of distribution transformers can continue to use grain oriented electrical steel cores.

Another improvement in the final rule is that it would allow five years for implementation rather than three years, as was in the proposed rule.

APPA “appreciates the Department of Energy taking positive steps in its final transformer efficiency standards rule to assist electric utilities in their efforts to continue providing reliable, affordable, and sustainable power to their customers,” it said.

“Electric utilities continue to struggle to source and obtain distribution transformers to properly maintain their systems. In relaxing the materials standards and extending the implementation timeline in its final rule, DOE has demonstrated that it has listened to industry stakeholders and understands the challenge before us,” APPA said.

APPA said it “looks forward to continued collaboration with DOE -- as well as our other government and industry partners -- to ensure the reliability of our nation’s electric grid. Engagement between industry and DOE from the beginning of any rulemaking process has consistently yielded the best results in terms of problem-solving.”

APPA staff will review the final rule and provide a summary to its members.

In January, Representatives Mike Kelly (R-PA) and Chris Deluzio (D-PA) introduced H.R. 7171, the Distribution Transformer Efficiency and Supply Chain Reliability Act of 2024.

The legislation is the House counterpart to S. 3627, introduced in January by Senators Sherrod Brown (D-OH) and Ted Cruz (R-TX).

The bills called for amending the Energy Policy and Conservation Act to limit increases to federal efficiency standards for specific distribution transformers.

The legislation played a key role in the DOE’s decision to reexamine the likely effects of the proposed rule if it were finalized.

APPA has also worked hard to make sure that public power’s concerns related the proposed rule were heard.

In March 2023, APPA said that efficiency standards for distribution transformers proposed by DOE would worsen current distribution transformer supply shortages and, to the extent that they were even feasible, would impose significant costs on consumers.

The March 27 comments filed by APPA were submitted in response to a DOE notice of proposed rulemaking on Energy Conservation Standards for Distribution Transformers issued in 2022.

NEW Topics