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Transformers

Distribution transformers reduce the voltage of an electric utility’s power distribution line to the lower voltages suitable for most of the equipment, lighting, and appliances in businesses and homes. They are constantly energized, and they constantly experience some energy losses. Even small changes in transformer efficiency can add up to large energy savings nationwide. Improving transformer efficiency means that a larger portion of the power generated in power plants will reach the point in the electric system where it is put to work. However, increasing efficiency in transformers faces a problem of split incentives; the utilities or construction contractors who install transformers are not the ones who will ultimately pay the electric bills.