Like utilities nationwide, Central Lincoln is being greatly challenged by supply chain delays, material shortages and massive cost increases for materials delivered. Demand for electrical supplies is robust, while transportation bottlenecks and raw material constraints are causing us significant concern over our ability to meet construction timelines. As we address these issues, Central Lincoln will strive to maintain supply levels to meet customer needs, while still maintaining emergency inventories.
We’ve all seen supply chain issues impact many aspects of life today. In some cases, lead times for Central Lincoln have increased six fold in the last two years when we’ve placed orders for materials. For example, new residential transformers typically took four months for delivery prior to the pandemic, and now they take between one year to 20 months to arrive. Costs for materials are also soaring — transformers that were $2,500 two years ago are now $15,000 each, and the cost is continuing to increase. This is not an exaggeration.
We were pleased to learn last week that the Defense Production Act has been invoked to boost the production of transformers. That’s an important step, but the material shortages also extend to equipment beyond transformers, and we don’t expect the situation to be fixed quickly.
We appreciate our customers’ patience and understanding, and we will do our best to continue to meet their needs in a timely fashion, however, many of these delays are beyond our control. We will continue to be clear about our challenges with regard to supplies and will work closely with our customers and suppliers to handle these difficult times together. We ask that builders and construction companies give us as much advance notice as possible about their upcoming projects, and for their consideration in this unprecedented time.
Ty Hillebrand, General Manager
