Total Owning Cost Basis
Amorphous Metal Transformer Purchases on a Total Owning Cost Basis
One method of illustrating how Amorphous Metal Distribution Transformers (AMDTs) provide economic savings is by evaluating on a Total Owning Cost (TOC) basis. TOC encompasses both the initial cost of the transformer, plus the future cost of the energy losses over the life of the equipment. The essence of transformer loss evaluation is to recognize that there is a cost of losses associated with the distribution transformer purchase decision that is just as important as the initial price. A user who saves on the initial purchase price of the transformer may in fact be losing money by not properly considering the value of the energy losses over the transformer's active life.