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Transmission
The transmission system carries electricity from the power plant to local communities, often over long distances. Electricity does not travel easily. Transmission lines have some resistance to the flow of electricity (this is similar to the friction caused by the flow of water in a pipe). This causes them to lose a portion of the electricity they transport. Early in the history of electricity transmission systems, energy developers discovered that the higher the voltage in electricity lines, the less resistance and, therefore, the less wasted electricity. Thats why when electricity travels long distances, it is better to have it at higher voltages.
Generators produce electricity at lower voltages (25,000 volts or less). So before the electricity leaves the plant, it goes to a transformer that boosts it to higher voltages (typical voltages for long-distance transmission are 138,000 to 500,000 volts). This equipment is called a step-up transformer. High voltage transmission lines, supported by large steel towers, then carry the electricity long distances to substations in communities.
Distribution
The distribution system takes power from the substation (part of the transmission system) and delivers it to homes and businesses. The distribution systems network of wires can be overhead, with wires strung from poles, or underground, using buried cables. In the distribution system, transformers first reduce or step down the high voltage electricity to distribution voltages (typically less than 10,000 volts). From these substations, electricity is used at different power levels to run factories, mass transit and streetlights. Substations also send electricity to residential neighborhoods. Another small transformer on the street or in the neighborhood further reduces the voltage to 120 volts for lights and 240 volts for larger appliances, such as stoves and clothes dryers. When it arrives at our homes or businesses, the amount of electricity we use is metered and we are charged according to what we use.