[Federal Register Volume 80, Number 131 (Thursday, July 9, 2015)]
[Notices]
[Pages 39422-39423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16784]


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DEPARTMENT OF ENERGY


National Power Transformer Reserve

AGENCY: Office of Electricity Delivery and Energy Reliability, 
Department of Energy.

ACTION: Request for information (RFI).

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SUMMARY: The Department of Energy (DOE), Office of Electricity Delivery 
and Energy Reliability (OE), is seeking comments and information from 
interested parties to inform its policy development related to the 
possible establishment of a national reserve of power transformers that 
support the bulk power grid. The focus of the RFI is on the design and 
implementation of a National Power Transformer Reserve Program.

DATES: Comments must be received on or before August 24, 2015.

ADDRESSES: Comments can be submitted by any of the following methods 
and must be identified as ``Transformer Reserve.'' By the Federal 
eRulemaking Portal: www.regulations.gov. Follow the instructions for 
submitting comments. By email: [email protected], and include 
``Transformer Reserve'' in the subject line of the message. By mail: 
Alice Lippert, Office of Electricity Delivery and Energy Reliability, 
U.S. Department of Energy, Forrestal Building, Room 1E-078, 1000 
Independence Avenue SW., Washington, DC 20585. Note: Delivery of the 
U.S. Postal Service mail to DOE may be delayed by several weeks due to 
security screening. DOE, therefore, encourages those wishing to comment 
to submit comments electronically by email.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to Alice Lippert, Office of Electricity Delivery and 
Energy Reliability, U.S. Department of Energy, 1000 Independence Avenue 
SW., Washington, DC 20585 at [email protected], 202-586-9600.

SUPPLEMENTARY INFORMATION:

I. Background

    The U.S. electricity sector operates a complex and highly reliable 
electric power system, upon which the Nation's economy and security 
depend. The North American Bulk Power System (BPS) is extensive, 
consisting of various infrastructure components, including 
transformers, switches, transmission towers and lines, control centers, 
and computer controls. Of the BPS' physical infrastructure, large power 
transformers (LPTs) are critical components, because the reliable 
operation of the BPS depends heavily on the safe and efficient 
operation of a network of interconnected LPTs.
    LPTs have long been a concern for the U.S. electricity sector 
because the failure of a single unit can interrupt electricity service 
to a large number of customers and lead to collateral damage, and it 
could be difficult to quickly replace it. LPTs are large, custom-
designed pieces of equipment that entail a significant capital 
expenditure and a long lead-time to manufacture and ship. LPTs are not 
usually interchangeable. System owners often own and maintain spare 
LPTs at a number sufficient to mitigate risks from premature failure. 
The limited availability of spare LPTs, and the long lead times to 
procure replacements, could pose a potential threat to the availability 
and reliability of the Nation's bulk power system in the event of an 
emergency where a relatively large number of existing LPTs are damaged 
or destroyed.
    Large-scale disruptions to the U.S. BPS are rare; however, it faces 
a wide variety of evolving threats, including but not limited to: Cyber 
and physical security intrusions, weather-related

[[Page 39423]]

incidents; geomagnetic disturbances (GMD); and electromagnetic pulse 
(EMP) effects. The electricity sector serves one of the four lifeline 
functions as identified by the Department of Homeland Security, which 
means that its reliable operation is so critical that a disruption or 
loss of electricity will directly affect the security and resilience of 
other critical infrastructure and the Nation.
    The recently released ``Quadrennial Energy Review, Energy 
Transmission, Storage and Distribution Infrastructure Report, April 
2015,'' recommends that ``DOE should coordinate with the Department of 
Homeland Security and other Federal agencies, States, and industry--an 
initiative to mitigate the risks associated with the loss of 
transformers (p. 2-42).'' This request for comment is an initial step 
in executing that recommendation. Part of the national strategy to 
reduce risk from large power transformers, which has been under 
development by the DOE, includes assessing the need for a reserve of 
LPTs.

II. Request for Information

    For the reasons stated above, DOE is exploring possible National 
strategies to mitigate risk to the reliability of the bulk power system 
arising from the loss of LPTs. This RFI provides the public, and 
industry stakeholders, the opportunity to provide their view on the 
development and structure of a National program to establish and 
maintain large power transformer reserves in the United States. The 
intent of this RFI is to solicit information pertinent to the need and 
viability--regulatory, economic, and technical--of such a program. The 
information obtained is meant to be used by DOE for program design and 
strategy development purposes. In your comments, please reference the 
question(s) to which you are responding. Please also provide supporting 
information if noted, including studies, reports, data, and examples 
relevant to mitigating the risks associated with the loss of LPTs.

1. Program Need

    Is there a need for a National Power Transformer Reserve? How would 
such a reserve affect the reliability and resiliency of the North 
American bulk power system? Are there alternatives to a power 
transformer reserve program that can help ensure the reliability, 
resiliency, and recovery of the bulk power system? Is there a need for 
a nationally-maintained inventory of large power transformers?

2. Power Transformer Criteria

    What types and sizes of power transformers should be considered for 
inclusion in a transformer reserve program versus operational spare 
capacity? What are the design considerations for replacement 
transformers to support the bulk power system?

3. Ownership and Economics

    What would be an appropriate structure for procuring and 
inventorying power transformers? How, and by whom, should a program of 
this type be administered? How would a transformer reserve be funded?

4. Technical Considerations

    Is it technically feasible to develop a reserve of large power 
transformers when most are custom engineered? Is additional research 
and development (R&D) necessary to develop suitable replacement 
transformers that can be rapidly deployed from inventory in the event 
of an emergency?

5. Procurement and Management

    How should procurement, maintenance and management of the reserve 
power transformers be conducted? For example, should manufacturers be 
pre-qualified, and if so, according to what criteria?

6. Supply Chain

    What are the critical supply chain components for the manufacture 
and delivery of large power transformers (e.g., electrical steel, 
copper, silicone, high voltage bushings, etc.)? Are there shortages or 
other considerations that could necessitate using the Defense 
Production Act Priority Ratings to ensure sufficient parts are 
available in a time of need? Are there related skilled workforce 
issues?

7. Manufacturing

    Is there adequate manufacturing capacity to support a transformer 
reserve program? What is the lead time for engineering, manufacture, 
and delivery of large power transformers? Are there approaches that 
could help to speed manufacture and delivery of large power 
transformers?

8. Transport and Deployment

    What specialized transport infrastructure would be necessary to 
ship large power transformers from manufacturing site to storage 
locations, and from storage locations to field site in the event of an 
emergency? What should be the number and location of transformer 
storage sites? What are feasible delivery times for LPTs that reside in 
a reserve to an affected site?

9. Field Engineering and Installation

    Are there adequate domestic engineering and installation resources 
available throughout the United States to install multiple bulk power 
transformers simultaneously? What additional resources would be 
necessary?

10. Criteria for Deploying Transformers

    What criteria should be used for activating and deploying 
transformers from the reserve? How would deployment be funded?

11. Additional Comments

    Are there additional concerns regarding a National Power 
Transformer Reserve Program that need to be considered?

    Issued at Washington, DC, on July 2, 2015.
Patricia A. Hoffman,
Assistant Secretary, U.S. Department of Energy, Office of Electricity 
Delivery and Energy Reliability.
[FR Doc. 2015-16784 Filed 7-8-15; 8:45 am]
 BILLING CODE 6450-01-P