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You're assuming that the line is dead shorted. In that case, assuming zero source impedance, current would increase as well. In reality, source impedance often limits the very high voltage short circuit current to less than the lower voltage.

Think of it this way: I have a 120 volt, 5000 watt totally resistive load (no motors). At 120 volts, I am pulling 41.67Amps. Say the power plant supplying this load is 100 miles away, and the overhead power line (regardless of voltage level) has .01 ohms/mile resistance (total of 1 ohm resistance). If the power company tries to deliver power at 120 volts, instead of the 5000 watts I want, I will get 5000 watts, but the power company will have to generate (5000 + 1 * 41.67^2) = 6736 watts*.

If instead the power company steps the voltage up to say 13.8kV right outside my house (as close to the load as possible), total current at 13.8kV will be 362mA, so total power loss in transmission is .131watts (as opposed to 1736 at 120 volts).

From the 120 volt perspective, my 5000 watt load "looks like" 2.88 ohms, since P = V*I = V^2/R.

If we are looking at my house through a 13.8kV/120v transformer, the transformer has a turns ratio of 13800/120 = 115, thus increases voltage by 115 times, and decreases current by 115 times (from lowside to highside). Thus from the 13.8kV perspective, my 5000 watt load "looks like":

P = V^2/R = (120 * turns_ratio)^2/R = (120*115)^2/R = 13800^2/R

R = 38,088 ohms.

The transformer changes voltage and current inversely to each other; this results in a change in apparent impedance relative to the highside and lowside of the transformer.

*This is assuming the power company is delivering voltage at 120 volts through the line, and uses some sort of reactive power to compensate for the voltage drop through the line. This is often done by installing capacitor banks, or having generators closer to the load produce reactive power. The wasted transmission losses plus the cost of this extra equipment would result in higher power costs being passed on to customers.

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Q: Transformers are used to increase the voltage and reduce the current in overhead power lines but wont increasing the voltage subsequently increase the current as resistance is a constant?
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