Mike couldn't believe the number.
While walking his yard, we came across an older transformer his team labeled "damaged beyond repair" (DBR). It sat atop a flatbed trailer, ready for its trip to the scrapyard. Curious, I asked how the transformer earned it’s DBR status. Mike's answer shocked me. Labeling this transformer damaged beyond repair was misleading. I knew Maddox could repair the problems Mike described. So I made him an offer to buy the unit—and he accepted because my offer exceeded his normal scrap earnings by +500%.
Misconceptions and Mislabeling
Every week, utilities tell me the same thing:
- "We only scrap transformers we can't repair"
- "99% of our recycled transformers can't be fixed"
- "Since COVID, we use transformers until they're absolutely dead"
And they're not lying. Once the supply chain ceased in 2020, utilities relied on repair shops (internal and vendor-based) more than ever. Now, utilities only scrap transformers their shops have deemed "beyond repair."
But what if your shop's assessment is wrong?
"Unlikely" you say. "My technicians are transformer experts—they wouldn’t mislabel a unit DBR prematurely."
Yet, Mike believed the same thing about his repair shop.
Mike's shop wasn’t labeling transformers as DBR due to a lack of technical expertise. They could repair almost anything. But two misconceptions, absorbed from years in the industry, drove them to consistently mislabel transformers.
Misconception #1: Only Two Options
Before COVID, damaged transformers held little value beyond scrap. Utilities operated under a binary mindset: repair or recycle. If a transformer wasn't deemed worth repairing, scrapping was the only alternative.
But the market's changed. Demand now outpaces supply, opening the way for a third option: Resale.
- Repair: fix and put back in your utility’s inventory
- Recycle: dispose of transformers and only receive scrap value
- Resell: sell to Maddox and receive premium value
But there is a problem: no one ever informed the shops. They're still operating on a two option mindset: repair or scrap. When they apply the labels "damaged beyond repair" or "junk," it's not necessarily because repairing the transformer is impossible. It's because they only think in two categories. And if they decide to forgo repair, the transformer must go to the scrapyard. In their minds, no other option exists.
Misconception #2: Junk for Me = Junk for All
When your utility labels a transformer DBR, they don't always mean "damaged beyond repair"; they mean damaged beyond repair for us. Based on their supply needs and labor priorities, they determined they don't need that transformer. But sending these transformers to the scrap yard can cost your organization hundreds of thousands of dollars in lost revenue. Because you only earn scrap value for them (rather than fair market value).
"Your decision to forego repair doesn't mean your transformer's junk."
Redefining 'Damaged Beyond Repair'
You want the most value for your organization's retired assets. But you might not be a transformer expert. How would you know if you are prematurely scrapping transformers?
That's why I'm writing this article.
I want to equip you—and your technicians—with the knowledge needed to get you the most value from retired transformers. Below are the main forms of damage that lead utilities to prematurely label their transformers DBR. Your transformer technicians and shop foreman can use this article as a guide when determining a retired transformer's next stage of life—whether to scrap or pursue resale.
3 Types of Repairable Transformer Damage
- Tank Damage
- Component Damage
- Internal Damage
Repairable Tank Damage
Surface Rust
In many cases, rust is a cosmetic issue that can be addressed without disrupting a transformer’s operation. Small amounts of surface rust typically do not make the transformer beyond repair. But even in extreme cases where the rust renders a tank irreparable, we can still salvage the core and coil (which is often worth more than the entire transformer's scrap value).
Oil Leaks
Leaking oil can indicate damaged seals, gaskets, or fittings. But leaks do not necessarily render a transformer beyond repair. Minor leaks may be addressed by replacing the damaged seals or gaskets and replenishing the oil. And while most utilities won't tackle larger leaks that require a welding fix, Maddox will invest the extra time and effort to save that transformer.
Damaged or Missing Cabinet
The cabinet on a padmount transformer protects the high and low voltage bushings. Physical impact, rust, or a harsh environment can damage the cabinet (even to the point of making the cabinet unsalvageable). But because we're able to fabricate new cabinets, damaged or missing ones don’t render a transformer beyond repair.
Repairable Component Damage
Broken Bushings
Bushings are essential for insulating the transformer and providing a safe point for electrical connections. Broken or damaged bushings are a common issue, but they are typically repairable or replaceable without scrapping the entire transformer. Replacing a damaged bushing can restore full functionality to the transformer without compromising overall performance.
Damaged Gauges and Components
The loss or damage of your transformer’s gauges may impair the ability to monitor the transformer's operational status. However, these gauges can be replaced or repaired relatively easily. The absence of functional gauges does not render the transformer beyond repair.
Other components like damaged Tap changers, can cause operational problems, but are generally repairable, and spare parts are widely available. Even significant damage to a tap changer does not necessarily mean the transformer is beyond repair, especially if the rest of the transformer remains in good condition.
Repairable Internal Damage
Loose Connections
Loose electrical connections can cause overheating, arcing, vibration, or inefficient energy transmission. These are often caused by wear or improper installation but can usually be fixed by tightening or re-soldering connections. A loose connection does not necessarily indicate irreparable damage; it is a common maintenance issue that can be resolved.
Moisture and Combustible Gases
Moisture and combustible gases in transformer oil are common indicators of potential issues. But they are not necessarily signs of irreparable damage. Moisture in the insulating oil can reduce a transformer's efficiency and insulation properties; however, it can often be removed through vacuum dehydration or an oven bake out. Similarly, the presence of combustible gases, detected via gas-in-oil analysis, can indicate electrical faults, overheating, or arcing. By identifying and repairing the root cause—such as a fault in the tap changer, bushings, or winding— can often resolve the issue. In both cases, proper analysis and corrective actions can restore the transformer’s functionality without the need for replacement.
Damaged Windings
Damage to transformer windings—whether from electrical faults, mechanical stresses, or thermal overloads—will automatically remove a transformer service. But that doesn’t mean the transformer is necessarily “junk.” Often the tank and components are worth more than scrap value when sold to Maddox.
Stop Scrapping Transformers
Your utility deserves more than scrap value for repairable transformers. To begin the conversation within your organization, here's two questions you can ask your repair shop:
- "Do we always consider resale when assessing damaged transformers?"
- "Do we label transformers 'damaged beyond repair' even if they're technically repairable (based on the examples in this article)?"
If they answered yes to either of those questions, it's time to give Maddox a call.
Sometimes labeling a transformer "damaged beyond repair" is accurate—certain units aren't worth saving. But far too often utilities apply this label without considering viable alternatives. Now more than ever, when our nation needs every repairable transformer back on the grid, utilities can ease supply chain pressures and earn more for retired transformers by selling to Maddox. Fill out the form below to get started.
