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When a transformer is energized, a transient current, known as magnetizing inrush current, generally flows for a short period of time until normal flux conditions are established. Under most practical system conditions, this current transient is of little consequence. However, in very rare cases a combination of circumstances may be obtained which results in this inrush being of such consequence as to impair momentarily the proper operation of the system. Because of the numerous faetors bearing upon this general problem, an investigation has been made to determine the effects of transformer inrush currents under a wide variety of system conditions. It is the purpose of this paper to discuss the mechanism by which inrush currents are produced, the results of tests and calculations, and studies made with the miniature-system analyzer. Factors that determine the significance, of inrush current from the standpoint of system operation and methods for reducing the inrush current or mitigating its effects are also discussed.