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Utilities enter peak hurricane season lacking enough transformers – WSJ (NYSEARCA:XLU)

Crushed power line by fallen tree during hurricane

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according to a U.S. energy companies are facing transformer shortages heading into peak hurricane season, when critical electrical power equipment is most at risk of destruction Wall Street diary Report.

Utilities say wait times for transformers used to move power from higher to lower voltages have quadrupled, averaging well over a year, increasing the likelihood of prolonged blackouts during hurricane season, the report said .

Suppliers, plagued by supply chain problems and a global scramble for power-related commodities, have been unable to keep up with demand.

New Jersey’s Public Services Enterprise Group (PEG) said it now takes more than a year to procure distribution transformers that previously took 12 weeks.

Duke Energy (DUK) said it now takes about three years to source high-voltage transmission transformers, instead of about two years, and 18 months to source low-voltage transformers, instead of a year or less.

ETF’s: (NYSEARCA:XLU), (NYSE:UTG), (NYSEARCA:VPU), (BUI), (GUT), (FUTY), (IDU), (RYU), (FXU), (UPW)

“There will be some things that we don’t have that our brothers and sisters on the coast will need in the event of a major hurricane,” said Rudy Garza, top manager at city-owned CPS Energy in San Antonio WSJ.

https://seekingalpha.com/news/3864305-utilities-enter-peak-hurricane-season-lacking-enough-transformers-wsj?utm_source=feed_news_all&utm_medium=referral Utilities enter peak hurricane season lacking enough transformers – WSJ (NYSEARCA:XLU)

Russell Falcon

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