UTILITY DISTRIBUTION TRANSFORMERS IN A RESTRUCTURED INDUSTRY: IMPLICATIONS FOR EFFICIENCY

Jennifer Thorne and Toru Kubo

March, 1999

Introduction

As the electric industry restructures, many utilities are looking for ways to cut costs to gain a competitive advantage. Given the uncertainty of the market place, purchasing practices once characterized by a long-range view (e.g., lifecycle costing) are being reconsidered. Changes in utility distribution transformer purchasing practices could result in efficiency reductions and significant lost opportunities for energy savings. To better understand how retail competition is affecting utility distribution transformer purchases and the implications for energy efficiency, ACEEE performed a study, the results of which are presented in this report. In the summer and fall of 1998, ACEEE conducted interviews of utility distribution engineers and purchasing decision-makers to determine current practices in the purchase of distribution transformers. In addition, projected trends and shifts in purchasing practices in response to restructuring in the electric utility industry were investigated. This report outlines the scope and results of our findings.

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15pp., 1999, $12.00, U992