ARCHIVES

• Revised Enclosure Dimensions, December 2008
• Transformer Efficiency legislation now law in Canada
• Transformer Efficiency Requirements in the USA, June '06
• Natural Resources Canada C802 update, June '06
• Price adjustment, May '06
• Price increase, Nov '05
• Electrical Steel Surcharge, Mar '05
• CAN/CSA-C802.2-00 Energy Efficiency Regulation, Nov '04
• Revised Pricing, Oct '04
• Price Adjustment, Feb '04

Announcement November 3, 2006

Transformer Efficiency legislation now law in Canada

Amendments to the CAN/CSA-C802.2-00 Transformer Efficiency legislation were passed yesterday and will be effective immediately.

This means that as of today, all transformers that fall within the guidelines will only be quoted as CAN/CSA-C802.2-00 compliant.

For the past little while, Rex Power Magnetics has been quoting both C802.2-00 compliant and non-compliant units. It is now imperative that only prices for C802.2-00 compliant units be used.

The latest information available from the US Department of Energy shows the Nema TP-1 implementation of January 2007.

Here are a couple links to Natural Resources Canada and the Office of Energy Efficiency websites with additional and detailed information:

-Click here- For information about the November 2006 amendment to CAN/CSA-C802.2-00

-Click here- To learn more about the technical requirements for Dry type transformers.

Here is a summary of what is covered under both regulations for our Canadian and US customers:

Announcement June 15, 2006

Transformer Efficiency Requirements in the USA

To Our Valued Customers,

You may already know that The Energy Policy Act of 2005 (EPACT 2005) was enacted on August 8, 2005 by USA Congress. EPACT 2005 requires that low voltage dry-type distribution transformers manufactured after January 1, 2007, meet the Class I Efficiency Levels for distribution transformers specified by NEMA TP-1 standards. DOE (USA Department of Energy) Office of Energy Efficiency and Renewable Energy published its FINAL RULE effective May 30 th , 2006. This Final Rule sets the standards for Efficiency, Test procedures and Enforcement that apply to Low Voltage dry type transformers with; - Input voltage of 600 volts or less - Rated for operation at a frequency of 60 Hertz. - 15KVA to 2500KVA

Low Voltage Dry type transformers excluded from the NEMA TP-1 Energy Efficiency requirements are special purpose transformers, such as an Auto-transformer, Drive (Isolation) transformer, Grounding transformer, Machine-Tool (control) transformer, Non-ventilated Transformer, Rectifier transformer, Regulating transformer, Sealed transformer, Special-Impedance transformer, Testing Transformer, Transformers with tap ranges of 20% or more, Uninterruptible Power Supply transformer or welding transformer.

DOE (USA Department of Energy) officials advise that this act is now law and will be in effect for all transformers built in the USA or imported into the USA as of January 1, 2007.

The DOE officials also advise that efficiency standards for Medium Voltage Dry Type Distribution Transformers (Input voltage of 601 Volts to 34.5 kilovolts) are expected to come into effect around the year 2010.

REX Power Magnetics is fully prepared to produce these higher efficiency units with optimized designs, higher grade silicon steel and specialized core cutting equipment. In fact REX has produced High efficiency transformers for the past 3 years to meet various State level requirements in the USA and Canada . REX high efficiency units are approved to carry the ENERGY STAR® label and will carry the appropriate performance certification mark.

With the recent dramatic increases in the cost of copper and grain oriented silicon steel, manufacturers with optimized designs and specialized core cutting equipment will be the only ones able to offer quality and value at competitive prices.

Starting in September 2006 our responses to requests for quotations for units likely to be produced after January 1, 2007 will also be quoted as NEMA TP-1 compliant. The price of higher efficiency units are normally 10% to 15% higher than standard efficiency units.

For more information go to:  http://www.eere.energy.gov/buildings/appliance_standards/commercial/distribution_transformers.html

We ask that you notify our customers of this efficiency requirement that becomes effective on January 1, 2007 and ensure that they are aware of its implications and are prepared for it.

It appears that many transformer manufactures are not as yet prepared (with designs and equipment) to effectively meet this efficiency requirement. Please forward any feedback you receive from customers or other relevant information from the marketplace regarding this upcoming efficiency standard.

Please contact the REX Sales Team, Rory or myself for any questions or concerns. 

Regards,

Levon Hasserjian
Vice President, REX Power Magnetics

Announcement June 1, 2006

Natural Resources Canada - C802 update

To Our Valued Customers,

I am sure you recall when NRC's (Ministry of Natural Resources Canada) Energy efficiency Regulations for Dry Type Transformers came into effect January 1, 2005 requiring that dry type transformers manufactured in or imported to Canada meet minimum efficiency values specified by CSA C802 standards. You may also recall how some manufacturers persistently undermined the widespread implementation of the regulation by using some ambiguous wording in the regulation as a loophole to avoid compliance.

NRC has since amended the regulation to eliminate the "loopholes", harmonized it with CSA      C-802 standards and obtained Federal Cabinet Approval. The revised regulation was published in the Canada Gazette on May 6th for a 75 day public comment period and is expected to be Published and Registered for immediate implementation soon after. NRC expects the revised regulation to come into full effect during late August or Early September 2006.

The implication of the revised regulations can be summarized as follows.

· Effects dry type transformers manufactured in or imported into Canada as of the date of coming into full effect. Existing inventory can be sold.

· Applies to 3-phase and 1-phase 60HZ with primary voltages of 35kv or below and regardless of secondary voltage (rated 15 to 833KVA for 1-phase and 15 to 7500KVA for 3-phase units).

· Exemptions from above are auto, instrument, rectifier and converter, non-ventilated, testing, furnace, welding and rewound or rebuilt dry type transformers.

· Must bear a verification mark from a certifying organization. i.e. CSA

REX Power Magnetics has been fully prepared to produce these higher efficiency units with optimized designs, higher grade silicon steel and specialized core cutting equipment. In fact REX has produced these units for the past 3 years. REX high efficiency units are approved to carry the "Energy Star" label and the required CSA certification mark.

With the recent dramatic increases in the cost of copper and grain oriented silicon steel, manufacturers with optimized designs and specialized core cutting equipment will be the only ones able to offer quality and value at competitive prices.

Starting in July, our responses to requests for quotations for units likely to be produced in the fall of 2006, will also be offered as C802 compliant. All open orders that are not scheduled to be built prior to this date are also subject for review and price adjustment.

For further information do not hesitate to contact the REX Inside Sales Team.

REX Power Magnetics

Announcment: May 9, 2006

Price Increase

To Our Valued Customers,

It has been less than five months since the most recent announcements of price increases by North American Transformer manufacturers, driven primarily by the continued and rapid escalation of world wide electrical steel prices. Now we are facing yet another price increase, driven this time by the dramatic and almost overnight escalation of copper prices world wide. More info...

Announcment: November 25, 2005

Price Increase

To Our Valued Customers,

We at REX Power Magnetics had elected to absorb the third wave of increases that came into effect in the 4th quarter of 2005. We've now been informed by our suppliers of further substantial increases to the costs of raw materials starting in January 2006. This includes increases to the cost of Grain Oriented Silicon steel, Copper and Aluminum conductors and Insulating materials. As you know these materials account for the majority of the production cost of our products. More info ...

Announcment: March 15, 2005

Electrical Steel Surcharge

Dear Valued Rex Customer,

Considering the uncertain and volatile nature of the prevailing global silicon steel prices, we at REX Power Magnetics have elected to introduce an "Electrical Steel Surcharge" that will appear separately on our quotations and invoices.

Starting early in 2nd Quarter our quoted prices will include a surcharge. The amount of the surcharge will be shown separately as a dollar amount and will be valid for one month only. The surcharge amount may change and will be confirmed to you for orders placed outside the one month quotation period.

Considering that electrical steel represents a substantial portion of transformer construction and may vary greatly per KVA rating, the surcharge on orders with delivery times longer than 60 days will be addressed specifically. Click here for more...

Announcement:November 19, 2004

Canada's Energy Efficiency Regulations Effective January 2005

Over the past six months, electrical silicon steel and rolled sheet steel have recorded dramatic and successive price increases totaling over 70% from March 2004 price levels. We at REX Power Magnetics were able to shield our valued customers by absorbing a portion of these cost increases and successfully delay the balance through annual purchase agreements until December 2004.

Starting in January 2005, we expect our prices to be adjusted somewhere between 15% to 20% depending on steel content of various product categories.

We will honor our current prices for all orders received by December 31st, 2004, and marked for shipping before January 21st 2005.

For more details and a printable version, click here.