rbulsara, I suppose you are talking about closed transition transfer switches; what you say is true, as far as it goes. Using transfer switches, of what ever type, the load available is the load available, it may not be enough to fully load the generators. If the generators are paralleled to the utility, they can produce what ever power level is desired. Also, paralleling the generators to the utility, they can be ramped up and ramped back down, no sudden loading and unloading as would happen with transfer switches, closed transition or otherwise. Going from utility to generator with a closed transition transfer switch would block load the generator and the load would see the transient response of the generator to that block loading. Going back to the utility, the generators would experience a full load rejection (yeah, it happens with all generators connected through transfer switches) which is not a great thing to do to a generator more times than necessary.