On October 12, 2007, The U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy published its final rule on distribution transformer efficiency, 10 CFR Part 431, Energy Conservation Program for Commercial Equipment: Distribution Transformers Energy Conservation Standards; Final Rule. The final rule sets minimum energy efficiency standard levels for liquid-immersed distribution transformers and medium-voltage dry-type distribution transformers. The final rule revises efficiency standards previously proposed in DOE's Notice of Proposed Rulemaking (NOPR) published August 4, 2006. Compliance is required for all transformers manufactured for sale in the United States beginning January 1, 2010.
It is necessary for transformer manufacturers and transformer users to begin now to plan and implement an orderly transition process. The new requirements necessitate a large transformer re-design effort. Most distribution transformers sold today do not meet the required efficiency standards and must be re-designed. Meeting these new requirements means that transformers will in most cases become heavier and larger. Manufacturers must plan and implement engineering and production changes in order to handle these units, and factory testing equipment must be brought into compliance with new DOE testing requirements. In addition, raw material suppliers must be allowed sufficient time to plan for increased material requirements and to mitigate material shortages that are likely to occur.
Howard Industries is already preparing for the transition. Marketing, engineering, purchasing, manufacturing, quality assurance, and transportation planners are working to determining what systems changes will be necessary. All necessary changes will be made as soon as they are identified, including any needed capital investment or increase in manpower. Some changes have already begun, including the addition of over 500,000 ft
2 of manufacturing space and the purchase of certain critical long-leadtime equipment.
Howard Industries has set the following preliminary transition schedule. The schedule is designed to allow adequate time for the re-design process and for raw material suppliers and transformer users to make preparations.
Date
| Design/Manufacturing Status
|
January 1, 2008 |
The transformer re-design process will begin |
April 1, 2009 |
Start manufacturing DOE-compliant designs (along with existing non-compliant designs) |
June 30, 2009 |
The transformer re-design process will be completed |
September 1, 2009 |
Only DOE-compliant designs will be started through the manufacturing process |
September 30, 2009 |
Only DOE-compliant designs will complete the manufacturing process |
January 1, 2010 |
Compliance required by DOE |
Howard marketing personnel and field sales representatives will be in contact with each of our customers to answer any questions. Close coordination between Howard Industries, customers and raw material suppliers is essential to insure a smooth transition and to minimize disruptions in the marketplace. Howard Industries is committed to do whatever is necessary to accomplish this.
