One method of illustrating how 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.

TOC = Initial Purchase Price + Cost of Future Energy Losses This chart illustrates that despite a higher initial cost, the use of AMDTs results in overall financial savings for utilities over the life of the transformer, compared with the use of conventional silicon steel core transformers.

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