The engine is not surging and you may be right on the meter seing noise.
This unit does have a transformer in it.
Like I said old unit.
This is the backup for my home.
I pulled it out of a nursing home in 1999 when they upgraded to a 200A model.
The Kohler salesman (old guy) that sold the new unit said he sold them this one when they built the place in the 60s
hour meter shows 1050 hrs.