Coulter
Let me try to answer your questions
1. "This could be where I am having trouble. I'm translating the first into "magnetizing current" and the second into I^2R losses. I'm paying for the I^2R cause that's real power. The magnetizing current is 90deg out and makes VARS. As long as my pf is not in the toilet (better thatn .85 lagging), I'm not paying for the VARS."
The magnetizing losses still have a resistive component. Whether the current is in phase, out of phase, or whatever, it still creates heat when it flows thru the primary windings. Those are the no load losses, and are extremely variable at the transformer design by adding core material for example. A manufacturer can vary those by probably 50% in magnitude through primary winding material and core components. They have amorphous steel that produce very low no load losses.
2. "Looking at the specs of the so called "energy efficient" xfmrs, It appears the main differences are:
1. more iron in the core so as to not drive as close to saturation.
2. more copper (or aluminum) in the windings to cut the I^2R losses."
My point is made to more of a utility specification, a university or other large transformer purchaser, particularly of medium voltage transformers. There I can tell a manufacturer that I'll purchase future transformers based on the lowest total owning cost and it will be determined by (purchase price + $6.50 x no load losses + $3.25 x load losses), or whatever I determine the loss values to be. If you buy enough transformers each vendor will taylor their design around the lowest total owning cost. The combinations are almost limitless.
If you are buying only a few, and not waiting for them to be produced at the factory on an individual basis, you have 2 basic choices, standard or high efficiency.
Jim T