Harmonic Mitigating Transformers are used by power quality professionals to rid commercial and industrial facilities of the power quality problems associated with harmonic currents. Harmonics are imposed on distribution systems by adjustable speed drives, electronically ballasted lighting, the power supplies of every computer, copier and fax machine. This transformer has ability to attenuate harmonic currents. This transformer can reduce the energy losses that harmonics would otherwise cause in conventional transformers. Harmonic mitigating transformers use phase shifting, electromagnetic flux and source impedance to help reduce harmonics in electrical distribution systems. It is selected to cancel positive and negative sequence harmonic currents on the transformers primary bus or within the transformers secondary windings.