How the Transformer Shortage Affects Your Texas Electricity

by | Jun 23, 2023 | Industry News

Texas Homebuilders Alarmed by Shortage

A national transformer shortage is making both replacements and new installations take much longer. Learn what's going on!
Whether they’re mounted on a pole or a concrete pad outside your home, transformers bring power to your home. But with a national shortage, they’re getting harder to replace. Find out what’s happening.

Most transformers really aren’t much to look at. But you can’t have an electrical grid without them. And the nationwide transformer shortage has been a concern for almost six years. But this long-time issue only seems to be getting worse. Is there going to be a solution to this transformer shortage? And does it affect the price of electricity for you?

What’s a Transformer and Why Do We Need It?

No, we’re not talking about the half-robot half-car aliens in Michael Bay’s films. We’re talking about those electrical boxes you see on utility poles. Transformers step down high-voltage electricity from power lines to the lower-voltage electricity we use in our homes.

This hard-to-notice part of the grid makes it possible for us to heat and cool our homes. To turn the light on. To charge our phones.

So, with an ever-worsening shortage, supplying electricity to new homes or replacing broken transformers for old ones will become more difficult. 

The Transformer Shortage in the US

Many factors contribute to this shortage. It started with labor constraints and shipping issues as early as 2017. But, the delay in manufacturing new transformers took an even bigger hit with the pandemic in 2020. Then, the problem became most apparent in 2021. And the war in the Ukraine doesn’t help either.

Manufacturing issues coupled with soaring demand are why some builders have to wait a year for new transformers. While large orders typically took 12 weeks in 2020. But now just three years later, the estimated wait time is now 52-86 weeks.

This is why 20% of utility companies have had to delay or cancel electrical grid projects. And with hurricane season starting in Texas, one big concern is finding parts for a damaged power grid.

What Does the Future Look Like?

Currently, transformer manufacturers are still scrambling for materials and labor. Unfortunately, a lot of the components come from overseas. And setting up manufacturing sources in the US isn’t easy.

Meanwhile, the Department of Energy (DOE) wants to enact a new standard for transformers. This would require transformers to be made with amorphous steel cores. Though these types of cores conduct electricity more efficiently, there’s only one manufacturer in the U.S. Because this change could extend the shortage, Lawmakers are urging the DOE to rethink its proposal. However, the court ordered new rules for higher efficiency are due June 2024.

How Does the Shortage Affect the Price of Electricity

A shorter supply always means higher prices. So, there’s a chance that the cost will reach you as higher transmission charges from a provider or ERCOT. Texas utilities are working to refurb the older transformers they still have to make them last longer. All the same , if you’re buying a new-build home, the higher cost will probably affect your pricing.

Luckily, there’s still a place you can get cheap electricity in Texas.

Shop Electricity Plans

You can enjoy cheap electricity through www.texaselectricityratings.com. This is where you can find great deals, browse rates, and shop for the best plan that suits your home.

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