Ohioans are well aware of the critical importance of reliable electricity, especially during the stormy season when transformers and power lines are susceptible to damage. Unfortunately, communities often experience prolonged power outages due to delays in acquiring new transformers. These essential components play a crucial role in the electric grid, and the current disruptions in the supply chain are posing challenges for power companies and co-ops.

To address this issue, I've introduced the bipartisan Distribution Transformer Efficiency & Supply Chain Reliability Act. The aim is to strengthen the U.S. transformer supply chain and safeguard domestic production from potential adverse effects of a proposed Department of Energy policy. The proposed rule, if implemented, could exacerbate transformer shortages by mandating the use of a different steel type, primarily manufactured overseas, rather than the domestically produced "grain-oriented electric steel."

Over 95% of transformers currently utilize this American-made steel, contributing to efficiency and reliability. Abruptly altering the steel requirements poses a risk to an already delicate supply chain, leading to potential business losses for American steel manufacturers like Cleveland-Cliffs and jeopardizing jobs for Ohio steelworkers. It may further extend the time required for electricity providers to obtain new transformers.

Dependence on foreign steel could result in shortages and delays, significantly impacting transformer production, especially amidst increasing demand. This shift carries the potential for more prolonged power outages, transforming a temporary inconvenience into a more protracted and widespread issue. A recent incident in Southwest Ohio, where over 13,000 households lost power due to winter weather damaging transformers, serves as a stark reminder of the importance of maintaining a robust and efficient transformer supply chain to ensure the resilience of our energy grids.

Source: delgazette.com