Supply Chain Update
Global supply chain disruptions combined with labor shortages and skyrocketing inflation have dramatically
increased the cost of goods and services across our country. According to the Bureau of Labor
Statistics, as of June, the consumer price index had risen 9.1% over the past year, the highest
increase since 1981. Like the households and businesses we serve, Consumers Power has not been
immune to the impact of these extraordinary price increases. As a utility, many of the materials
and supplies needed to maintain our electric grid have risen in cost between 33% and 500%.
Compounding the problem is that many of the items we rely on for day-to-day operations have been
increasingly difficult to acquire. While we are making every attempt to mitigate the current supply
chain constraints, we expect lead times for new construction projects to increase dramatically for
the foreseeable future.
Examples of supply chain constrained materials include:
Primary cable: Demand for underground cable is enormous right now. This has caused lead times to
increase from three weeks to more than five months. The price has continued to increase the past
Secondary pedestals: In the past 18 months, the price has nearly doubled, and lead time has grown
to 48 weeks.
25kV vise top insulators: These items are used on nearly every pole CPI installs. Lead time has
increased from one day to a current back order of seven months.
PVC conduit: Prices have increased more than 500%. This can be blamed on extraordinarily high
demand combined with a shortage of raw materials.
Transformers: Lead time and prices continue to increase. Lead time for transformers is more than
one year. Some manufacturers are not even quoting transformers until they can satisfy current
orders. This has contributed to a 250% price increase.
To minimize the impact to CPI operations, employees have worked diligently to foster a resilient
supply chain. CPI has leaned on distributors, established new vendor relationships, and benefitted
from a well-stocked storeroom. However, even the best planning is contingent on steady
improvements in the global manufacturing and transportation sectors. While we hope supply chain
issues will begin to improve soon, indications are that we can expect the current situation to
extend into 2023.