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Thanks for the quick reply, travelover. Am I correct in thinking that the wasted energy will be in the form of keeping the transformer warm?

I'd like to wire three individually switched 12 VAC 20-watt halogen puck lights in parallel to a single plug-in transformer. Is there any problem with switching only on the output side of the transformer, leaving it connected to 120 VAC at all times, even when all the lights are switched off?