This webpage tracks an ongoing focus, and will be updated as needed with new information.

How we're navigating transformer supply issues

Like all electric utilities around the nation, the City of Loveland is impacted by limited manufacturing capacity and supply chain shortages for pad-mounted electrical transformers. Our most frequently asked question these days: "Will you be able to provide a transformer for my project?" 

Are transformers available right now?

Yes, but availability varies depending on required secondary voltage and the size (kVA) of transformer required for the specific project. 

Our Power Division tracks all development projects from conceptual review through construction, assesses each project’s needs and compares that list to our available inventory and future inventory (purchase orders in progress) – allowing us to continue managing inventory as proactively and responsibly as possible.  

What’s the wait time for transformers right now?

Current wait times are 1-2 years, depending on transformer type, size and secondary voltage.  

How different is this from the norm?

Historically the wait times for transformers were around 3-5 months, which allowed us plenty of time to place orders and receive the transformers necessary to complete all development projects on schedule. Over the past year, those wait times have increased significantly - which makes it impossible for us to support development projects the way we have in the past.  

What are we doing to mitigate transformer delays?

• Proactively placing transformer orders. During the early stages of supply chain issues, our staff proactively placed transformer orders to cover future developments; unfortunately, our contracted manufacturers were unable to meet quoted lead times and we’re still waiting to receive those units. 
• Implementing a Transformer Allocation Policy. Last fall our staff also implemented a formalized Transformer Allocation Policy, requiring satisfactory completion of a permanent meter set inspection before a transformer is installed to ensure we’re serving the development community equitably. Staff also very recently updated the permanent meter set inspection process to ensure clarity for developers on this process.
• Seeking out refurbished transformers when needed. We’ve also explored reputable companies that refurbish used transformers. These transformers are in extremely high demand (and as a result, are 1.5-2.5x more expensive), and are often available sooner than transformers coming from our contracted manufacturers. Developers are responsible for the actual cost of these units. 
• Increasing purchasing limits. Our staff worked with City Council to extend the emergency purchasing ordinance and increase the limit from $300,000 to $2M, giving us a higher level of purchasing agility and flexibility to counteract impending cost/lead time increases and to better support large developments that enter the development review process.
• Extending transformer purchasing need forecasts. We’ve extended our forecasted transformer needs beyond what we see in the development review queue (i.e. one to two years out) using historical usage information and determined what volumes might be needed for future purchases, which enables us to act on potential needs beyond a two-year horizon.
• Getting even more creative. We’re continuing to explore other creative ways to serve new customers even when inventory of specific transformer sizes/voltages are depleted.

We understand the lack of inventory or availability of transformers could adversely impact completion timelines for new development, which in turn could impact developers economically and understand the gravity of those potential outcomes. We appreciate your collaboration as we find solutions to these challenges and continue to do our best to support you. 

We’re here to help 

For specific questions, reach out to Frank Lindauer at 970-962-3707 or frank.lindauer@cityofloveland.org. 

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