Abstract: In an arc furnace or melter furnace employing concentric graphite inner and outer electrodes, the accumulations of tolerances, distortion and mechanical forces can cause a loss of concentricity leading to reduced performance and eventually to electrode degradation. To avoid that condition, a plurality of insulating spherical or cylindrical spacers are disposed in the annular gap between the inner and outer electrodes. The spacers are held in position by arcuate recesses in the outer surface of the inner electrode or in the inner surface of the outer electrode. The electrodes may be constructed in segments that are assembled by threading one segment into another segment.