News Releases | City of Loveland

2022-11-10 11:25:43 By : Mr. Andy Zeng

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Due to unprecedented market conditions and global supply chain disruptions, material costs and lead times for some utility infrastructure components are unpredictable. Lead times may fluctuate significantly between the time of design estimate and project construction. Transformer manufacturers are unable to provide reliable shipping dates and lead times for transformers may exceed 112 weeks.

Effective September 30, 2022, the City of Loveland will not guarantee availability of utility infrastructure materials at the time of construction, even if a developer or customer design estimate has been paid. Until supply chain disruptions subside and material lead times improve significantly, the City of Loveland Power Division (Power) reserves the right to allocate materials as needed.

Power will pursue alternate methods of obtaining materials necessary for construction of electric utility infrastructure, including purchasing refurbished transformers, seeking new suppliers and obtaining additional contracts for transformer purchases. Power secured additional transformer storage capacity from a vendor in Denver as our warehouse space is limited.

Power examined all transformers installed since January 2020 and compared projects that were development-driven to those considered power operations and maintenance to determine how many transformers would support normal operations. Supplies will be stored in our warehouses and transformers will be labeled specifically for operation and maintenance use to ensure transformer availability in case of an emergency.

City transformers will not be allocated to a development until the customers are ready for their certificate of occupancy, per the Director of Loveland Water and Power. Power has been setting temporary transformers for construction while they wait for permanent transformers to arrive to ensure that developers and contractors have power for their projects.

We appreciate your attention to this matter and also your trust in our staff to manage this difficult situation. Power will always choose what is best for developers and City customers.

The graph below details current lead times for transformer manufacturers. Please contact Frank Lindauer, Acting Power Division Manager, at 970-962-3707, frank.lindauer@cityofloveland.org with questions or concerns.

500 E. 3rd St. Loveland, CO 80537 Phone: 970-962-2000

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