From: Jerry Hodge [mailto:jhodge@howard-ind.com] 

Sent: Wednesday, November 16, 2011 11:42 AM 

To: Kenneth Winder; Richard Parker 

Cc: Corkran, Jerry L; Caitlin Johnson; rick.anderson@faypwc.com; tballo@earthjustice.org; 

ScottB@lvmetals.com; john.caskey@nema.org; john.cymbalsky@ee.doe.gov; 

adelaski@standardsasap.org; Teckman@nwcouncil.org; gbf1@pge.com; carlos.gaytan@ge.com; 

rgreeson@federalpacific.com; bruce.r.hirsch@bge.com; mhyland@appanet.org; 

dave.millure@metglas.com; Nadel, Steve; wes.patterson@us.abb.com; Eric.Petersen@aksteel.com; 

Raymond.Polinski@atimetals.com; rroy@nrdc.org; robert.saint@nreca.coop; 

chuck.simmons@pgnmail.com; mark.stoering@xcelenergy.com; cabolduc@lbl.gov; kcoughlin@lbl.gov; 

Brian Coffey; gjrosenquist@lbl.gov; Rosenstock, Steven; Michael Rivest; jrossetti@mlgw.org; 

Jim.creevy@nema.org; Meyers, Aaron; Daniel.Cohen@hq.doe.gov; jmauer@standardsasap.org; 

greg.coulter405@gmail.com; bsmith@federalpacific.com; pkumar@publicpower.org; Trujillo, Antonio; Phil 

Hopkinson; ahofmann@publicpower.org; BermanEconomics@gmail.com; Paul.Ryan@hitmet.com; 

jerry.schoen@aksteel.com; mwaltner@nrdc.org; chad.kennedy@us.schneider-electric.com; Kampa, 

Michael; Marusinec, Richard M 

Subject: RE: Used Distribution Transformer market and prices 

Ken an All:

 

Your information on the used transformer market is very interesting and enlightening. It 

sounds like the rebuilders are doing a booming business.

 

In your discussion with this rebuilding firm, did they say anything about transformer 

efficiency? When they rebuild a unit, is it upgraded to meet the DOE Efficiencies? Do 

they say that they need to meet the DOE efficiencies or do they just not worry about 

efficiency?

 

It's not clear to me if DOE requires any efficiency levels from a rebuilt transformer. I am 

trying to find out if there are any DOE efficiency requirements on rebuilt transformers. 

Navigant is trying to find out, what if any, are the efficiency requirements for a rebuilder.

 

It's also interesting to note that their prices are close to our new units that do require 

meeting DOE efficiencies.

 

Thanks for the information, I appreciate it.

 

Jerry

 

Jerry Hodge 

Consulting Engineer, E.E., M.S., P.E. 

Retired V.P. & G.M. of Pole Type Transformer & Regulator Div. 

Howard Industries Inc. 

P.O.Box 1588 

Laurel, Ms, 39440 
601 422-1539 Bus. 

484 226-6190 Cell 

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-----Original Message----- 

From: Kenneth Winder [mailto:kwinder@mleainc.com] 

Sent: Tuesday, November 15, 2011 5:31 PM 

To: Richard Parker 

Cc: Corkran, Jerry L; Caitlin Johnson; rick.anderson@faypwc.com; tballo@earthjustice.org; 

ScottB@lvmetals.com; john.caskey@nema.org; john.cymbalsky@ee.doe.gov; 

adelaski@standardsasap.org; Teckman@nwcouncil.org; gbf1@pge.com; carlos.gaytan@ge.com; 

rgreeson@federalpacific.com; bruce.r.hirsch@bge.com; mhyland@appanet.org; 

dave.millure@metglas.com; Nadel, Steve; wes.patterson@us.abb.com; Eric.Petersen@aksteel.com; 

Raymond.Polinski@atimetals.com; rroy@nrdc.org; robert.saint@nreca.coop; 

chuck.simmons@pgnmail.com; mark.stoering@xcelenergy.com; cabolduc@lbl.gov; kcoughlin@lbl.gov; 

Brian Coffey; gjrosenquist@lbl.gov; Rosenstock, Steven; Michael Rivest; Jerry Hodge; 

jrossetti@mlgw.org; Jim.creevy@nema.org; Meyers, Aaron; Daniel.Cohen@hq.doe.gov; 

jmauer@standardsasap.org; greg.coulter405@gmail.com; bsmith@federalpacific.com; 

pkumar@publicpower.org; Trujillo, Antonio; Phil Hopkinson; ahofmann@publicpower.org; 

BermanEconomics@gmail.com; Paul.Ryan@hitmet.com; jerry.schoen@aksteel.com; mwaltner@nrdc.org; 

chad.kennedy@us.schneider-electric.com; Kampa, Michael; Marusinec, Richard M 

Subject: Re: Used Distribution Transformer market and prices

Richard and Colleagues: 

 Discussion with a national firm involved with the used-distribution transformer market has 

provided a look into what is presently happening there. According to them, the used transformer 

market has certainly been impacted by the Rule making on efficiency effective on January 1, 

2010. The demand for used transformers has escalated rapidly. 

 There are basically three (3) categories for used distribution transformers described as follows 

per discussion with them: 

 Category I: Distribution transformers that have been purchased as used equipment from 

industry and utilities that have cores in operating condition. The original primary and secondary 

windings are both removed and are replaced with new windings of copper. Insulating fluid is 

replaced, original tank is re-used but is re-painted, bushings are replaced, new gaskets installed, 

etc. This rebuilt transformer is tested and sold at approximately the same cost (maybe slightly 

higher) than newly manufactured transformer prices available at large-quantity purchases at the 

present minimum efficiency standards. 

 Category II: Distribution transformers that have been purchased as used equipment from 

industry and utilities that are working properly and do not require un-tanking. Insulating fluid is 

replaced, re-gasketed, original tank used but is re-painted, bushings are replaced, etc. This 

rebuilt transformer is tested and sold at between 60 and 75% of new transformer cost. 

 Category III: Owners of distribution transformers send their used transformers to 

maintenance shops for minor repairs, fluid replacement, re-painting, replacement of bushings, 
gaskets, etc. Cost for such repairs and transportation costs to and from shop are acceptable up to 

a set level (not to exceed 50% of new cost as an example). If transformer maintenance and 

improvements are estimated to exceed that value, the maintenance shop buys the unit and it may 

end up in Category I above or be scrapped and salvaged depending upon its condition. 

 

 The owner's of this nation-wide business expressed their excitement about the prospective 

business that will be created for them as prices increase for newly manufactured distribution 

transformers. 

Ken 

-- 

Kenneth A. Winder, P.E.

Manager-Engineering

Moon Lake Electric Association 

800 W Hwy 40 

PO Box 278 

Roosevelt UT 84066

435.722.5406 Office

435.724.1539 Cell 

435.722.5466 Fax

E-Mail: kwinder@mleainc.com

Web Site: www.mleainc.com