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[Markets] Utilities Fear Lack Of Transformers As Peak Hurricane Season Looms Utilities Fear Lack Of Transformers As Peak Hurricane Season Looms

The first two months of hurricane season have been quiet, but that could all change as peak hurricane season begins. US utilities warn about the increasing risks of sourcing critical components to repair power grids if storms wreak havoc.

An upswing in tropical storms and hurricane activity usually begins in August and lasts through early October. This is illustrated in the graph below produced by The Weather Channel.

Power-grid operators warned that transformers, distribution lines, and poles are in short supply. This would increase the possibility of prolonged power outages if a tropical storm or hurricane devastated an area.

The concern with entering the active period of hurricane season is that a larger area in the Atlantic can fuel tropical development, which means more potential landfall areas. This is shown below:

For people in coastal areas known for frequent tropical activity, perhaps having a generator on standby with Starlink internet might not be a terrible hedge if utility companies struggle to fix grids following storms this season. 

Tyler Durden Tue, 08/02/2022 - 19:45
Published:8/2/2022 7:04:51 PM
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