Distribution at 240-600 volts in other than a wye, solidly-grounded configuration isn't necessarily undesirable, although sometimes it is chosen for apparently having the least initial cost. Phase-to-ground fault current will typically be low—well below the hundreds or thousands of amperes seen with arcing faults in solidly-grounded systems.
An ungrounded system can resonate across the natural capacitance formed between ground and the three energized phases. An intermittent failure of insulation can incite phase-to-ground overvoltage with magnitudes well above system ø-ø voltage. One apt recounting of a decades-ago occurrence is
http://67.115.161.42/dat/beemaIPSH6.doc An acceptable tradeoff is to convert an ungrounded system to a high-resistance grounded system. A slightly more complex circuit than that of a ground-detector can be effective in damping ground overvoltage. This will limit ø-g overvoltages, both transient and steady-state. Ground-fault currents in properly compensated systems are usually below 5 amperes. Where the serving transformer is 4-wire wye, a single resistor can be used to make a system having significantly limited transient and steady-state overvoltage incidents above the ø-ø level. For a 3-wire delta source, three small auxiliary transformers are also required.
The petrochem industry actively promotes low-voltage {typically 480V} systems that are high-resistance grounded. They advocate installation of ground detectors so that a single ø-g fault can be located prior to a second, more debilitating fault occurring on another phase.
It is a serious misapplication to apply 480Y/277V molded-case circuit breakers or 300V class-T (or G) fuses to other than a wye, solidly-grounded system.
Question to orignal poster johngeorge: What is the highside voltage of the subject Δ-Δ transformer?
[This message has been edited by Bjarney (edited 04-17-2002).]