Its just like a 480D : 208Y/120 but instead you have 480D : 220Y/127.
That way, if all the 208 loads are compatible with 220, he could remove all the other 240D :208/120 transformers , which it sounds like there at least one other.
The kwh/year savings would be something to look into, and a place like that sounds like they have a pretty big electric bill.
The ANSI C84 'minimum range B' of a 240V system is 209V, but in ANSI C84 extended 220Y/127 is 190, so they'd have to look carefully at voltage drop.
The maximum range B on the 127 side is 135, and for our normal 208/120 its 127.