Current flow through a wire increases the temperature of the wire. If too small a wire is used, the wire will heat up causing a loss in conductivity and possibly a fire. The thicker in diameter a wire is, the more current it can carry without overheating.

A load is a source of resistance that converts electrical energy into another form of energy. The components of a microwave, for example, are loads that work together to convert household electricity into radation that can be used to quickly cook food.

A semiconductor is a material that has a limited ability to conduct electrical current with conductivity between that of an insulator and that of a conductor. Silicon, a cheap and abundant material, is the most used semiconductor material although other materials are used in the electronics components made from semiconductors. The primary advantages of a semiconductor over a conductor is that the conductivity of a semiconductor can be varied under an external electrical field giving engineers precise control over complex circuits and, unlike conductors like metals, a semiconductor's conductivity increases with increased temperatures.

A transformer utilizes an inductor to increase or decrease the voltage in a circuit. AC flowing in a coil wrapped around an iron core magnetizes the core causing it to produce a magnetic field. This magnetic field generates a voltage in a nearby coil of wire and, depending on the number of turns in the wire of the primary (source) and secondary coils and their proximity, voltage is induced in the secondary coil.

Electricity is delivered from power stations to customers as AC because it provides a more efficient way to transport electricity over long distances. A line drop is a decrease in voltage between two points on an electrical transmission line due to resistance in the line. A lower current and higher voltage across the line will help compensate for the line drop.