NEMA Applauds FERC Ruling On Spare Transformers

10/23/2006


The National Electrical Manufacturers Assn. (NEMA) recently commended the Federal Energy Regulatory Commission (FERC) for the approval of a utility industry request to recover the costs of spare transformers kept in inventory in order to meet demand in the event of an electrical grid disturbance.

“This ruling,” said NEMA Vice President of Government Relations Kyle Pitsor, “is important for the utility industry and the manufacturing community. It is very responsive to the application filed by the Edison Electric Institute and signed by 41 utilities across the country, and will give utilities assurance of federal support and regulatory certainty. It will also result in the purchase of $50 million to $75 million of electrical equipment by the nation’s utilities.”

By approving the application, FERC agreed to participate in the industry’s Spare Transformer Equipment Program (STEP). STEP is a coordinated, industry-wide program designed to increase the electric industry’s inventory of spare transformers in order to ensure that the electric industry has sufficient capability to restore service when catastrophic events or attacks on the electrical grid have degraded reliability of equipment used to transmit electricity.

Each partner in the agreement is required to maintain and, if necessary, acquire a specific number of transformers. STEP requires each participating utility to sell its spares to any other STEP utility that suffers a “triggering event” -- i.e., an act of terrorism that destroys or disables one or more substations and results in a declared state of emergency by the President of the United States.

The ruling by FERC assures the utility industry that the federal government will approve cost recovery of the purchased equipment through single-issue rate-making.





No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Combined heat and power; Assessing replacement of electrical systems; Energy codes and lighting; Salary Survey; Fan efficiency
Commissioning lighting control systems; 2016 Commissioning Giants; Design high-efficiency hot water systems for hospitals; Evaluating condensation and condensate
Solving HVAC challenges; Thermal comfort criteria; Liquid-immersion cooling; Specifying VRF systems; 2016 Product of the Year winners
Driving motor efficiency; Preventing Arc Flash in mission critical facilities; Integrating alternative power and existing electrical systems
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
Designing generator systems; Using online commissioning tools; Selective coordination best practices
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
click me