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Transformers are set of equipment applied to electrical systems to adjust voltage levels for consumption, distribution, transmission, and generation needs. Actual technology indicates that they are responsible for approximately one third of total network losses. These losses must be accounted as power utility costs, costs to society and to the environment itself. The aim of this paper is to study the relationship between the transformer costs and its losses. A method for collecting cost data for building cost surfaces - the so called ldquoProduction and Total Cost Surfacesrdquo is presented and a study case, carried out at a slum located within the city of Sao Paulo, is developed. The 12 transformers designed according to the present proposal were constructed and have been in operation for 1 frac12 years. This approach helps the power utilities to purchase equipment according to the forecast demand, decreasing the total network losses as well as promoting broad social benefits.