U.S. DOE Distribution Transformer Efficiency Ruling
On October 12, 2007, the United States Department of Energy (DOE) issued its final ruling on distribution transformer efficiency. Distribution transformers manufactured in or imported into the U.S. on or after January 1, 2010 will be required to comply with DOE standards.
This ruling significantly increases the required efficiency of the equipment being purchased today in many cases. Power Partners has studied in detail the impact of this ruling on our production facility, our customers and our suppliers. Our intent is to utilize technology in the areas of design and materials to minimize the impact on weight and overall dimensions. We have anticipated and supported a move toward greater efficiency and have worked closely with our suppliers around the world to establish material availability as well as loss performance. While we expect commodities will be in a tighter supply, we can assure our customers that we will be able to meet their distribution transformer needs both in the transition period before 2010 and after the standards are in effect.
Our primary focus with our customers will be to provide information and training concerning these new requirements as well as to develop a transition plan that meets their business objectives. We are prepared to move as quickly as our customers desire and we will ensure that no project is impacted negatively by equipment deliveries crossing the January 1, 2010 deadline.
Of course the redesign effort and transition planning will be significant and we are in the process of preparing our team for the task. We will be prepared in the first quarter of 2008 to meet with each customer and develop a transition plan that will assure compliance by January 1, 2010.
We appreciate the confidence that our customers have placed in us in the past and we will work diligently to maintain that confidence in the future as we plan this transition.
