Utility Groups Warn Supply Chain Crisis “Threatens Both The National Security & Economic Outlook”

by | May 26, 2023 | Headline News

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    This article was originally published by B.N. Frank at Activist Post under the title Utility Groups, Others Warn Supply Chain Crisis “Threatens Both The National Security and Economic Outlook”

    A growing number of Americans – including lawmakers – are highly opposed to the Biden administration’s relentless support of ESG (Environmental, Social, and Governance) programs.  Experts also warn that rushing the “energy transition” could lead to power outages and other undesirable situations.  Heck – even proponents/beneficiaries of these programs are voicing concerns about the potential for power outages.

    From Utility Dive:

    US electrical steel shortage threatens energy transition, recovery from power outages, groups warn Biden

    Electric utilities and other stakeholders have asked President Joe Biden to convene an “Electrical Steel Summit” with manufacturers to address the “supply chain crisis.”

    A shortage of electrical steel is challenging the transition to emissions-free vehicles, delaying power restoration after storms and slowing new home and commercial construction, electric utilities and other groups warned President Biden on Monday.

    Electrical steel is used in the manufacturing of transformers, electric vehicle chargers, electric motors, and other equipment.

    “It is vital that the federal government recognize and support the domestic production of electrical steel to meet the unprecedented demand for electrification and grid modernization and resilience initiatives,” the groups said.

    Trendline: Inside the energy transition to Renewables

    Utility groups signing the letter are the Edison Electric Institute, American Public Power Association, and National Rural Electric Cooperative Association. Others include the Alliance for Automotive Innovation, GridWise Alliance, International Brotherhood of Electrical Workers, Leading Builders of America, and the National Association of Home Builders.

    The groups want Biden to convene an “Electrical Steel Summit” with manufacturers, electric utilities, and other stakeholders “to help solve the current supply chain crisis that threatens both the national security and economic outlook for the United States and to deliver on this administration’s goals for electrification and decarbonization.”

    Cleveland-Cliffs is currently the only domestic producer of grain-oriented electrical steel or GOES. The company told the U.S. Department of Energy in March that scaling up new steel production would not be easy.

    “While two domestic manufacturers have committed recently to increase GOES production, even with this expanded output, domestic supply levels will still fall far short to meet electrification goals,” the groups said in their letter to Biden. And those plans to expand “are now in flux” as the DOE considers new efficiency standards for distribution transformers, they warned.


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