From: Kenneth Winder [mailto:kwinder@mleainc.com] 

Sent: Tuesday, November 15, 2011 6:31 PM 

To: Richard Parker 

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chad.kennedy@us.schneider-electric.com; Kampa, Michael; Marusinec, Richard M 

Subject: Re: Used Distribution Transformer market and prices 

Richard and Colleagues: 

 Discussion with a national firm involved with the used-distribution transformer market has 

provided a look into what is presently happening there. According to them, the used transformer 

market has certainly been impacted by the Rule making on efficiency effective on January 1, 

2010. The demand for used transformers has escalated rapidly. 

 There are basically three (3) categories for used distribution transformers described as follows 

per discussion with them: 

 Category I: Distribution transformers that have been purchased as used equipment from 

industry and utilities that have cores in operating condition. The original primary and secondary 

windings are both removed and are replaced with new windings of copper. Insulating fluid is 

replaced, original tank is re-used but is re-painted, bushings are replaced, new gaskets installed, 

etc. This rebuilt transformer is tested and sold at approximately the same cost (maybe slightly 

higher) than newly manufactured transformer prices available at large-quantity purchases at the 

present minimum efficiency standards. 

 Category II: Distribution transformers that have been purchased as used equipment from 

industry and utilities that are working properly and do not require un-tanking. Insulating fluid is 

replaced, re-gasketed, original tank used but is re-painted, bushings are replaced, etc. This 

rebuilt transformer is tested and sold at between 60 and 75% of new transformer cost. 

 Category III: Owners of distribution transformers send their used transformers to 

maintenance shops for minor repairs, fluid replacement, re-painting, replacement of bushings, 

gaskets, etc. Cost for such repairs and transportation costs to and from shop are acceptable up to 

a set level (not to exceed 50% of new cost as an example). If transformer maintenance and 

improvements are estimated to exceed that value, the maintenance shop buys the unit and it may 

end up in Category I above or be scrapped and salvaged depending upon its condition. 

 

 The owner's of this nation-wide business expressed their excitement about the prospective 

business that will be created for them as prices increase for newly manufactured distribution 

transformers. 

Ken 
-- 

Kenneth A. Winder, P.E.

Manager-Engineering

Moon Lake Electric Association 

800 W Hwy 40 

PO Box 278 

Roosevelt UT 84066

435.722.5406 Office

435.724.1539 Cell 

435.722.5466 Fax

E-Mail: kwinder@mleainc.com

Web Site: www.mleainc.com