The goal is not so much to get rid of 4.16kv (though that certainly is happening) but rather rid of the ageing assets and reduced capacity associated with 4.16kv. For most POCOs 5kv construction stopped in the 70s, so anything remaining today is at least 40 years old. I say at least, because 4.16kv half the time is a byproduct of conversion from the 2.4kv delta days. Granted a pole pig can last over 100 years, but to POCOs they are considered disposable assets sized to last about 30 to 40 years.
Even if the 4.16kv system itself happens to be in good condition, there is still the issue of the infrastructure feeding it (which often happens to be even older). As one would guess, most 4.16kv systems were fed by much smaller local substations (of about 6 to 15MVA capacity) fed by what are now considered none-standard sub-transmission voltages like 26.4kv and 27.6kv. Some are lucky in that they used 12, 22 and 33kv since these are now close to common standards. And, consider that 27.6kv is fed by gear and transformers as well, making a 3rd group is ageing none standard assets.
POCOs typically go about this in two ways:
1. Pick a new official distribution voltage higher than 5kv like 13.8kv. Expand and set down new 40MVA, 50 or 60MVA transformers next to the older 115 to 27.6kv transformers at the sub-transmission supply substation. Draw out new 13.8kv trunk lines connecting all new loads to them. The 4.16kv system is slowly upgraded with reaming segments taken off the older 27.6 to 4.16kv intermediate substations via jumbo pole pigs with the 27.6kv system is gradually taken out of service and removed.
2. Turn the sub-transmission system into the distribution system. This is far more economical provided the sub-transmission system is still in good shape. The existing 115kv-23kv transformers are solidly grounded at the supply substation and a neutral is run along with sub-transmission poles. This is actually how a lot of our distribution voltages came about. 3 wire 12kv delta sub-transmission went 7.2/12.47kv Y, 22kv sub-transmission went to 13.2/23kv distribution and 33kv went to 19.2/34.5kv. Like this new construction could tap right off existing sub-transmission circuits and new transformers could be added at the 115kv stations as needed without having to worry about the existing combination. Adding a 3rd 60MVA delta wye transformer is a LOT easier when the other two units are of the same voltage, impedance and vector group. In fact, the two older units could be rated 40MVA while your new unit is rated 60MVA, as long as all have equal impedances & tap settings the load will divide evenly in proportion to the Kva rating. The 2nd 40 MVA can be replaced when it finally reaches its useful life 5 years latter with a new 60MVA, and then the 3rd 10 years latter. Then the buss and breakers can be replaced over a period of 4 years. New 23kv busses and breakers can come right off the existing. Now comparing that to literally doubling the size of the station, expanding the 115kv bays, new 115kv transformers (more than one in case the other fails since the existing will be of no help), new 13.8kv gear, control ect makes for a more expensive upgrade- provided the 27.6 isn't in dire need of immediately being pulled out of service. As the 23kv sub-transmission poles near capacity- or a single sub-trans circuit going out will results in to many customer being offline, new 23kv circuits a drawn out and connected to the 23kv system thats replacing the 4.16kv system. The same happens with the intermediate stations being removed and jumbo pigs feeding the remaining segments.