Supply Chain Challenges

Like many other industries, all utilities in the United States and abroad are experiencing supply chain challenges. Lead times on ordered materials are unpredictable and can be anywhere from a couple months to up to a year and even longer in some cases (i.e., 750+ kVA 3 Phase Padmount transformers can be 66 to 72 weeks from order to receipt). However, we’re committed to minimizing the effects of these issues on our customers as much as possible by planning ahead, monitoring the situation and adjusting as needed.

Utility specific impacts

Many factors are contributing to the supply chain challenges.

• Supply disruptions have made it difficult for manufacturers to get engineered component's and assemblies.
• Rising costs due to supply/demand, inflation and lack of competition are affecting the ability for manufacturers to obtain materials.
• High Industry demand for equipment and material continues, as a result of storm restoration, capital work, natural disasters across the United States and clean energy growth.
• Geopolitical issues are affecting the ability to obtain certain materials from outside of the United States.

Our Purchasing Strategy

We monitor and adjust our purchasing strategies to help reduce the impacts to our customers.

• Changing when we purchase materials. Longer, unpredictable lead times means purchasing more material, sooner.
• Finding alternatives and solutions. We are using new suppliers, adding manufacturers or vendors, changing to new or different products, and using alternative construction, where possible. We're also refurbishing old equipment.

Prioritizing the allocation of transformers and other material

We prioritize how equipment and materials are allocated in the following ways.

Restoration – Having enough equipment in our warehouses to restore power to customers after a major storm, heat wave, pole strike or other failure, is our first priority.

New customers – This includes:

• New homes, apartments, low income and affordable housing, office buildings and other facilities
• Customers and solar developers wanting to interconnect solar, wind, battery or other on-site renewable generation to the electric grid
• Customer installing electric vehicle charging stations at residences, businesses, parking lots or rest areas
• Customers wanting to switch from using a carbon-based fuel to electric
• Customers working on beautification projects

Our system upgrades – We continuously evaluate which upgrades need to be done now and what can wait. We're currently limiting requests for equipment replacements unless they are absolutely necessary.

The Outlook

The supply chain issues are expected to last for the foreseeable future. However, our adjustments to our purchasing and materials management strategy enables us to provide safe, reliable power to our customers. 

We strongly recommend contacting us as early as possible when starting new projects.

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