It is now widely known that the U.S. Department of Energy (DOE) has mandated minimum efficiencies for most distribution transformer types manufactured in the United States beginning January 1, 2010. Prior to the end of this year it will be necessary for all manufacturers to switch-over all mandated distribution transformer production to DOE-compliant designs. Howard Industries has already begun supplying DOE-compliant transformers to a substantial number of its customers and is busy working now with many others to complete the transition before year end. All distribution transformer users who have not yet completed transition or have not started planning for transition should immediately contact their distributor or field sales representative for assistance.
In order to accomplish a smooth and complete transition this year, Howard Industries has set cut-off dates for the discontinuance of non-DOE quotations and the production of non-DOE transformer orders.
Ordering Deadline
Howard Industries intends to complete the manufacturing switch-over in its factory to DOE-compliant transformers during the latter part of the third quarter of this year, to allow adequate time to complete the manufacture of any non-DOE designs that might still be in production at that time and to resolve any contingencies that might occur prior to January 1, 2010. In order to accomplish this, our manufacturing facilities will cease production startup of non-compliant transformers as of September 1, 2009.
All distribution transformer users should already be finalizing plans for the transition and be prepared to start ordering DOE-compliant transformers prior to the September 1 production deadline, allowing for contract leadtimes. Also, customers should complete their evaluation of DOE-compliant bids and issue awards with sufficient advance notice to allow time for Howard Industries to finalize engineering designs by July 31, 2009.
Quotation Deadline
Customers who are not already specifying DOE-compliant designs should begin doing so well in advance of the September 1 production deadline. Howard Industries intends to implement a March 15 cut-off for non-DOE blanket contract bids and a May 1 cut-off for spot-buy bids. No proposals for non-compliant transformers will be offered after these dates.
Transformer users and manufacturers alike recognize the need for immediate action and close coordination, so that the transition process can be completed this year with minimum supply chain disruption. Howard Industries expresses its appreciation to all of its customers who have already completed the transition and offers its assistance to those who are still working through the process.
