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Is it okay not to use the neutral provided in the transfer switch?

Answer:

If the application does not require a neutral, the answer is YES, it is okay not to use / utilize the neutral conductor provided / available in the transfer switch.

ASCO transfer switches will operate and switch between acceptable power sources even without utilizing the provided neutral conductor.  The microprocessor used on the transfer switches monitors the line voltage between the phases only.

Power Sensing Circuits

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