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Watertown Fire Rescue (WFR) responded to a electrical transformer that was smoking at the corner of 9th Avenue and 14th Street SE at approximately 0835 on Monday August 23rd. WFR found smoke coming out of the lid of the large transformer. Watertown Municipal Utilities were called to the location. Utilities arrived and rerouted the power to area customers. While on scene, WFR went to HyVee to notify them of a possible power outage and smelled an odor that is associated of an electrical fire. WFR crews investigated the cause of the odor and found a HVAC unit on the roof had a mechanical malfunction. Power was disconnected to unit and HyVee management notified. Watertown Fire Rescue was on scene for approximately 1 hour and was assisted by Watertown Police, and Watertown Utilities.