Capitalization of Transformer Losses.

You really need to do your own homework. If you're going to continue to use English as your language for your engineering work, you need to first review how to construct a complete sentence. "Capitalization" is a term that has a clear meaning in finance and punctuation. So to use "capitalization" in an electrical engineering sense implies that you wish to sell your transformer losses or you are unsure of the punctuation of these losses.

Now as for being able to do any standard methodology, we all learned the standard methodology of our professions by doing our own homework. We all stumbled along the way but we all did our own homework. If you cannot do your own homework from the textbooks and certified references that you can find, then you need to change your career path before you kill somebody.

#4

hi, I did the following to find out capitalization of transformer losses: But i could not understand why they kept 1 kW as losses for the case of both main power transformer and auxiliary transformer.

Evaluation of no load loss and load loss of transformer:

Hours in a year: 8760

Annual plant availability factor: 97%

Annual load factor: 70%

Tariff (Rs/kWh): NRs. 4.00/kWh

Escalation per year: 3%

Discount rate: 10%

Transformer on load since year: 2011

Evaluaiton of No Load Loss of Transformer:

So for showing us some effort on your part to actually do your own homework, I'll give you a little help. If you don't understand my reasoning then you will not be able to accomplish this work on your exam or at your job. (I seriously wonder if you've chosen the correct field for yourself.)

Well it appears to me that this really is a business problem and not an engineering problem. (Yes, most engineers do have to worry about the business too.) I suspect that the unloaded transformer power loss was kept at a standard 1 kW just so that something was kept constant for this comparison. In other words, this capitalization expense analysis is not saying that this transformer will have a 1 kW loss or a 0.5 kW loss or any other loss. This analysis is training a future engineer how to either win an argument or at least understand the perspective of an accountant.

As for how each kilowatt gets converted to United States Dollars (USD), it appears that some billing rate is assumed at about $4.50 a kilowatt hour in 2007. This is an exorbitant rate (by two significant figures) for a homeowner. I seriously doubt any commercial venture would accept a power bill rate at a hundred times more expensive than what they pay at home. I expect that this is actually a poor analysis by an accountant that confused the power charge rate per penny with per dollar.

Now if you cannot figure out how I came to my conclusions from the very same data that you provided, change you major. If any of the words I used are new to you, look them up in a dictionary.

Now do your own homework.