Last month, Halifax EMC CEO Tucker Lemley discussed the rising costs facing electric cooperatives and the importance of making smart investments to continue providing reliable, affordable power. While higher equipment and construction costs are a challenge throughout the utility industry, they also make careful planning more important than ever. At Halifax EMC, we continually look for ways to maximize the value of every dollar we invest on behalf of our consumer-members.

One example of this practice is a strategic transformer replacement and relocation plan recently approved by your Board of Directors. By leveraging infrastructure associated with new development and thoughtfully redeploying existing equipment across our system, this initiative will replace aging transformers, increase capacity where future growth is expected, improve reliability, and reduce the need for more costly purchases in the future. This long-term approach helps ensure we are prepared to meet our members’ needs for years to come while remaining good stewards of cooperative resources.

The upcoming movement of several power transformers is an example of leveraging new development in one area of the system to benefit the cooperative’s entire membership. As new infrastructure is installed at the Inez substation to support future development, the existing transformer can be redeployed elsewhere on the system rather than retired.

The plan begins with replacing the transformer at Inez. Once the new unit is energized, the existing transformer will be moved to the AC Cox substation, which serves the Enfield area, increasing available capacity there. The transformer currently serving AC Cox will then be relocated to the Sam’s Head substation, boosting capacity at that location while allowing a 50 plus-year-old transformer to be removed from service. Rather than purchasing a brand-new transformer for Sam’s Head, where load growth has remained relatively stable, Halifax EMC can redirect those dollars toward a larger need at Eaton Ferry, where continued growth is expected in the years ahead. Under the plan, a new 15 MVA transformer will be installed at Eaton Ferry, and the existing Eaton Ferry transformer will be moved to the GW King substation. This transfer will allow another aging transformer to retire while increasing system capacity.

This proposed rotation strategy provides significantly greater long-term value than simply replacing individual transformers as they fail. Engineering analysis showed the plan would reduce the average age of Halifax EMC’s transformer fleet from nearly 28 years to less than 18 years while adding 17.5 MVA of system capacity. Capacity improvements would occur at AC Cox, Sam’s Head, Eaton Ferry, Inez, and GW King substations, placing additional resources in areas where future growth is most likely. With relatively small increases in our capital budget, we were able to develop a plan that improves reliability systemwide and positions the cooperative for future growth.

At a time when costs continue to rise across the utility industry, Halifax EMC remains focused on affordability. By strategically relocating existing assets and investing where they provide the greatest benefit, we can replace aging equipment, increase capacity, and improve reliability without incurring the cost of multiple new transformers. It is a practical, cost-conscious approach that helps reduce future financial pressure on the cooperative and, ultimately, on the consumer-members we serve. We will continue working proactively to manage industry challenges while providing you with the tools and information needed to manage your own energy use.