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This paper presents a novel morphological scheme for the identification of transformer magnetizing inrush. The scheme decomposes a current signal into multiresolution levels based on synthesis and analysis operators of mathematical morphology. It is able to discriminate between inrush and internal fault currents even in the case of an inrush with a low second harmonic component and an internal fault current with a high second harmonic component. Simulation studies have been undertaken to evaluate the scheme based on a three-phase high-voltage power transformer operating under different conditions, which is simulated with an Alternative Transients Program. The testing results show that the proposed scheme is able to identify inrush currents reliably and provides an alternative solution for transformer differential protection. [ABSTRACT FROM AUTHOR]