This paper analyzes a practical methodology to assemble/combine commercial electrical steels in a singlephase core-type power transformer. The main advantage of these electrical steel combinations is the reduction of core losses and their associated cost, without compromising the integrity of the transformer. An explanation of the improved performance with a combination of electrical steels in core-type power transformers is presented in this paper. The steel combinations are studied using transient, nonlinear, 3D finite-element simulations, with proper calculation of core losses. Electrical steels in the core are modeled using their magnetization curves. Five commercial electrical steels are considered: four conventional steels (M-6, M-5, M-4, and M-3) and a laser-scribed electrical steel (TRAN-COR H0). From the simulations, the attainable reduction in core losses by means of steel combinations is determined. Results from the simulations are compared with laboratory tests. Finally, 3D finite element static thermal formulations are used to rule out hot spots in the cores made of electrical steel combinations.