Electrical utilities in the Gorge face an industry-wide supply chain disruption causing significant delays in delivery for some materials and cost increases across the board, according to industry officials.
In Washington, the Klickitat PUD (KPUD), which has offices in Goldendale and White Salmon, is starting to experience critical electric system equipment shortages due to the global shortage of materials, longer delivery delays from many vendors, and an increase in construction volume, Jim Smith, KPUD general manager, said in a news release.
“The utility is short on stock for their standard pad-mounted transformers,” he explained. The transformers take high voltage power from distribution lines and convert it to the 120 and 240 volts delivered to residences and businesses when underground power lines are used. Transformers are on order and the PUD expects deliveries throughout the year.
“We have been communicating with new customers and developers for months that we were expecting these shortages,” Smith noted. “Existing customers should also realize that we are facing the same supply chain issues that they are seeing in stores. Delivery times are getting longer and prices are increasing across many materials.”
In Oregon, the Northern Wasco County PUD (NWCPUD) is also facing shortages and price increases.
Jeffrey Teel, director of engineering, operations and technology for Northern Wasco County PUD (NWCPUD), based in The Dalles, said some of the current issues were anticipated by operational staff last year and the utility increased stock of some “key materials.”
“While we look forward to prices settling back down and product availability returning to normal, we are in a good position to maintain our current system, recover from storm damage and support the anticipated new construction in our district,” Teel said.
Price increases
Smith noted some equipment prices have more than doubled and delivery time has gone from weeks to over a year.
“These transformers, for example, normally have about a 16 week delivery time and were $1,500 each a year ago. Delivery is now more than a year out and they are being quoted at $6,000 each,” Smith said.
Compounding the supply chain problem is a large increase in new construction in Klickitat County, according to the press release. The PUD would normally see about $1.4 million in new electric construction activity each year. In 2021, this increased to $2.8 million and the same is expected for 2022, the release stated.
Additional shortages possible
At this time, KPUD and the electric industry are seeing the supply chain shortages limited to transformers, said Smith. “However, this combination of supply shortages, longer delivery times and increased construction may cause additional shortages in other utility equipment,” he added.
“The PUD Commissioners have directed staff to commit the funds required to allow us to keep two years of inventory in stock, rather than the normal six to 12 months,” said Smith. “We have the funds to be able to acquire these additional materials to support the increased growth in the county, but with limited supply and elevated usage, there is only so much we can do”. PUD staff has been working to source materials for these elevated construction levels for 2022 and for the 2023 construction season as well, Smith noted.
At the Northern Wasco PUD, Teel said the utility district is “being prudent in our system improvement work” by shifting focus to projects where material supply is not an issue. “This allows the district to conserve key materials until we have a better understanding of where the market is heading,” Teel explained.
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