What happens if the power goes out for the transformer? Will any settings be lost, or will everything be restored when power returns?

All relevant configuration information is stored in non-volatile memory on the transformer and fixtures. The transformer also contains a real-time clock backup battery. When power is restored, any schedules will resume from that point forward. When Internet access is restored, the transformer will reconnect to keep the time up-to-date, and remote control and configuration will be restored.