Thank you to all who have added to this thread, it has been most informative. A special tip of my hat to Wire-Smith for the link to the GE transformer theory paper. I learned a lot and cured my insomnia at least 7 times this weekend! Really, it was very good information.
I have visually verified this is a 3 wire, no ground/neutral wire downstream of the primaries on the substation transformers.
At one time, we had our own seasonal hydro generating station and a small coal fired boiler which ran the generator during the dry season. It appears to have produced 600 DC which ran a motor-alternator to turn out the 480 at 60Hz. The motor-alternator would have been easier to regulate the frequency than would the hydro or stream.
The POCO supplies primary at 13,200. Each of three, 999,999 Watt transformer has two terminals on the top. One ties to a hot leg of the primary and one ties to a common with which is both bonded to the POCO ground and to a ground peg just outside of the building housing the transformers.
The 480 secondary side of the transformers has only two terminals. There are only three wires leaving the transformer building. T1 connects across leg A and B of the 3 plant distribution wires; T2 connects across leg B and C; T3 connects across legs C and A. There is a stud welded to the bottom of the side of each transformer can. This stud connects to a conductor which bonds each can to the next and then to the same ground peg as the primary. There is no distribution ground or neutral wire from here downstream.
View attachment 20968
The distribution is mainly on poles and cross arms, open wire. There are three locations with piped, underground wiring. Some more recent main installations have used 4 wire runs which are grounded to earth at each end but do not run all the way back to the transformer building. In these and all other areas of the plant there is a ground peg at each transformer, transformer bank, or machine. I understand these local ground pegs and earth cannot return a fault back to the source if we have an unintentional ground fault of one of the distribution legs. It appears the location of this fault is what we are now searching to find. There are no indicator lights on the system for faults. Through planned outages, we have found an area when we believe the ground fault has most likely occurred. The electricians are working the area de-energized. They are using a megger where appropriate and an ohm meter where necessary such as the arresters.
I have initiated discussions with business management to replace the transformers with a package substation with remote primary and secondary switching and proper distribution. I'm still looking for that EE who is knowledgeable, thorough, and old enough to have seen something like it before and who is reasonable enough to help plan a measured, staged conversion to a modern system.