The feasibility of replacing or upgrading utility distribution transformers during routine maintenance

Abstract

It is estimated that electric utilities use about 40 million distribution transformers in supplying electricity to customers in the United States. Although utility distribution transformers collectively have a high average efficiency, they account for approximately 61 billion kWh of the 229 billion kWh of energy lost annually in the delivery of electricity. Distribution transformers are being replaced over time by new, more efficient, lower-loss units during routine utility maintenance of power distribution systems. Maintenance is typically not performed on units in service. However, units removed from service with appreciable remaining life are often refurbished and returned to stock. Distribution transformers may be removed from service for many reasons, including failure, over- or underloading, or line upgrades such as voltage changes or rerouting. When distribution transformers are removed from service, a decision must be made whether to dispose of the transformer and purchase a lower-loss replacement or to refurbish the transformer and return it to stock for future use. This report contains findings and recommendations on replacing utility distribution transformers during routine maintenance, which is required by section 124 of the Energy Policy Act of 1992. The objectives of the study are to evaluate the practicability, cost-effectiveness, and potential energy savings of replacing or upgrading existing transformers during routine utility maintenance and to develop recommendations on ways to achieve the potential energy savings. Using survey data obtained from utilities and analyses of the economics of refurbishment versus replacement of distribution transformers that are removed from service, it is found that on average utilities are implementing reasonable decisions on refurbishment versus replacement.