ABS and Traction control are tied together. Have your vehicle scanned for codes. Once you know the codes you will have a direction to look at. With codes stored in memory the ABS and traction control are usually turned off. Yes, you will still have normal braking but in bad weather conditions normal braking can be compromised.
Hydroplaning is usually a tire problem. When water or debris keep the tread from having a good contact with the pavement. Hows the tread on your tires? The lower the tread deepth the flatter the tire is to the pavement. Deep tread allows the water to get squished through the channels in the tire. When the tread wears down there is less room for the water to channel out of the way for the tire. If your tires are in pretty good condition then they should not hydroplane. Are your tires all season rated? that could make a difference too.
anyways, once you have the brakes scanned, see what codes the ABS module is turning on the light for. It could be something simple like a fuse or it could be that the actuators are froze up. And many things in between. What sensor did they tell you was bad? A wheel speed sensor is not a really big deal to replace. The scan would tell you if you have a wheel speed sensor code and which sensor is acting up if that is the problem. Sometimes you can have a wheel speed sensor code and the actual cause is a break in the wiring to the sensor. So, don't rely on codes only. Once you get the codes you should verify the code is the actual problem of the communication with the sensor is the problem. Like I said before the code just gives you a direction to check out. A code that says a sensor has a open or closed circuit means anything between the wire going out of the module to where the circuit comes back into the module could be a problem. Might be the sensor. might not be the sensor. Buying a sensor and replacing it may not fix the problem. Most times it is but better to check it out and if it is a break in the wiring, then fix the wiring and save the money for the sensor. Rather then replace the sensor and still have the code persist.
The transfer case shouldn't be a problem with the ABS and traction control light being on. (but I have seen crazier things).
Ford Expedition spongy brakes
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