I would like to know a bit more about the tranformer failure modes and then design safety features around the most common issues. Removing the fuel from the fire and keeping it away and safely held after an incident is a good idea.
My guess is that the incidence of this kind of failure are low enough that the insurance companies are willing to put up with it.
Recall that in the early part of the last century steam boilers were routinely used for heating apartment buildings. teh insurance companies eventually enforced the adoption of what would become ASME standards for boiler inspections and safety operations.
The same thing applies to the blowout preventers on oil drilling rigs like the one that failed on the BP rig in the gulf. the oil companies should have to obtain unsubsidized insurance on their operations and be held liable for uncapped (by the Feds) liabilities if they screw up. the blowout preventer manufacturers should have good designs, well tested and thorough inspection standards to insure their systems perform adequately.
Insurance costs can be a pretty effective way to force environmental responsibility.
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