CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of RFQ 23-034, Single and Three Phase Transformer Qualifications, to UUSCO of Illinois, Inc. and WEG Transformers USA for an amount not to exceed $7,300,000 and a two-year term (Item 1 of 2)
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The other related item on the City Council agenda is:
* 23-0409: Award of change order #1
Electric utilities use distribution transformers to supply the correct type of power to residential and commercial customers.
* Transmission lines bring power to the City at a high voltage to efficiently move the power over long distances;
* Substation transformers reduce the voltage so that feeder cable can distribute the power throughout the City; and
* Smaller distribution transformers (grey cylinders seen on pole tops, or green boxes seen in backyards) reduce the power from the feeders to a level the customer can use.
The Naperville Electric Utility (Electric) currently has approximately 8,900 distribution transformers installed throughout the City. Electric purchases new single and three phase distribution transformers every year to replace units as part of normal maintenance operations of the City's power grid and to support new construction of homes, businesses and service upgrades for things like electric vehicle chargers.
Changes in the Transformer Market
Before COVID, the transformer market was more stable. Delivery times were typically no more than six to nine months from the time a manufacturer received an order to delivery. Post-COVID, delivery times are now more than two years due to the following:
* Manufacturers reduced production during COVID due to labor and material shortages, which resulted in less available supply when post-COVID operations resumed. Labor and material shortages are still prevalent and are estimated to restrict supply for the foreseeable future.
* Elec...
Click here for full text