OEC Applauds DOE Transformer Rule Change That Eases Supply Chain Gridlock, Enhances Electricity Reliability

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Pat O'Loughlin President & CEO at Ohio's Electric Cooperatives | Ohio's Electric Cooperatives

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 from Ohio expressed his satisfaction with the changes, stating, “Building transformers made with Ohio steel is crucial to our electric grid and our energy independence.” Brown also commended the DOE for listening to stakeholders and making significant improvements to the initial standards, adding, “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.”

Pat O’Loughlin, President, and CEO of Ohio’s Electric Cooperatives, acknowledged the collaborative efforts that led to the revised rule, saying, “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.” He also highlighted the importance of continued access to electric distribution transformers for meeting the increasing demand for electricity in Ohio.

Louis Finkel, Senior Vice President of Government Relations at the National Rural Electric Cooperative Association, emphasized the significance of a stable distribution transformer supply chain in maintaining reliability and meeting growing demand. Finkel praised the final rule by stating, “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.”

The collaboration between stakeholders and the Department of Energy in revising the transformer rule is seen as a positive step towards ensuring electricity reliability and grid resilience in the United States.