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ABSTRACT- Electricity losses occur at each stage of the power distribution process, beginning with the step-up
transformers that connect power plants to the transmission system, and ending with the customer wiring beyond
the retail meter. The system consists of several key components: step-up transformers, transmission lines,
substations, primary voltage distribution lines, line or step-down transformers, and secondary lines that connect to
individual homes and businesses. These electricity losses are often referred to generically as line losses, even
though the losses associated with the conductor lines themselves represent only one type of electricity loss that
occurs during the process of transmitting and distributing electricity. System average line losses are in the range
of six to ten percent on most utility grids, but they increase exponentially as power lines become heavily loaded.
Avoiding a small amount of electricity demand in the highest peak hours can reduce line losses by as much as 20
percent. At such levels of losses, disproportionately more generation resources need to be operated to deliver the
same amount of electricity to end-users. The cumulative benefits can be very significant. This is because a one-
kilowatt (kW) load reduction at the customers end translates into more than a one-kW load reduction sometimes
very much more moving upstream to the distribution, transmission, and generation levels because of losses
compounding along the way. Each component of the distribution system can be optimized to reduce line losses.
This paper discusses how equipment choices can affect efficiency Power Plant Step Up Transformer Step Down
Transformer Step Down Transformer Distribution Lines Transmission Lines Residence.