Utilities Call on DOE to Strengthen Energy-Saving Transformer Standards

Eight major utility companies are supporting strong, new national energy efficiency standards for electric distribution transformers.

In a letter to U.S. Energy Secretary Samuel Bodman, the companies (PNM Resources, Exelon, Public Service Electric and Gas, Pacific Gas and Electric, Baltimore Gas and Electric, New York Power Authority, Sacramento Municipal Utility District, and Snohomish Public Utility District #1) urged the Department to substantially strengthen the agency’s proposal for transformer minimum-efficiency standards.

More than 40 million distribution transformers located on utility poles and cement pads across the United States serve the crucial function of reducing electricity voltage to the levels needed to power homes and businesses. In August, DOE proposed a weak standard that falls substantially short of the levels the agency’s own study shows would maximize economic savings. The agency is accepting comments through October 18th and will name the final standard next year.

Because all power travels through one or more transformers, even slight improvements in efficiency can yield huge savings. According to the DOE study, the standard supported by the companies would save 459 billion kilowatt-hours (about 50% more than the DOE proposal) and net $11.1 billion in savings (about $1.7 billion more than the DOE proposal) over 28 years. Once fully implemented, the annual electricity savings would be roughly enough to power all the households in Iowa.

“These leaders’ support for standards affecting equipment they themselves must purchase shows them to be true champions for improving power reliability and cutting energy waste,” said Kateri Callahan, President, Alliance to Save Energy.

Last summer, more than 3,000 distribution transformers failed during the heat wave in California leading to widespread outages. Because more efficient transformers waste less energy, they run cooler and can better withstand overload situations that can trigger power outages. The stronger standard would reduce peak electric demand by 6,600 megawatts and, over 28 years, cut 250 million tons of global warming carbon emissions, 71,000 tons of smog-forming nitrogen oxides, and 4.5 tons of highly toxic mercury.

Transformers last 30 to 50 years, but due to an aging electricity system infrastructure, a very large number of transformers will need replacement in the years ahead.