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Transformers use magnetic induction between 2 coils of wire to produce a voltage in the secondary winding. Typically the main purpose of a transformer is to step up or down the voltage by having differing number of windings between the primary and secondary coils. A secondary effect is to keep the 2 systems electrically isolated from eachother. If one of the phases becomes grounded, the ground is only seen on the portion of the system downstream of the transformer, thus increasing relibability.

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Q: Isolating transformer theory
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