The invention is a device and method for eliminating core excitation losses in a distribution transformer when the transformer is not supplying power to loads. The invention consists of sensors, a control circuit, a user interface and a power contactor. The power contactor is connected on the line side of a transformer and is opened or closed automatically based on preprogrammed time or load criteria determined by the control circuit. In one operational mode and when the transformer is disconnected from the line, the control board generates low power pulses at the transformer load connection points in order to “search” for loads. If a load is detected, the transformer is reconnected by way of contactor closure. If the transformer load drops to zero, for a predetermined amount of time, the transformer is again disconnected and the pulsed load search is reestablished.