Electrical power is measured in watts (W) and is calculated by multiplying the voltage (V) applied to a circuit by the resulting current (I) that flows in the circuit: P = IV. In addition to measuring production capacity, power also measures the rate of energy consumption and many loads are rated for their consumption capacity. For example, a 60W lightbulb utilizes 60W of energy to produce the equivalent of 60W of heat and light energy.

Circuits are not limited to only series or only parallel configurations. Most circuits contain a mix of series and parallel segments. A good example is a household circuit breaker. Electrical outlets in each section of the house are wired in parallel with the circuit breaker for that section wired in series making it easy to cut off electricity to the parallel parts of the circuit when needed.

In a parallel circuit, each load occupies a separate parallel path in the circuit and the input voltage is fully applied to each path. Unlike a series circuit where current (I) is the same at all points in the circuit, in a parallel circuit, voltage (V) is the same across each parallel branch of the circuit but current differs in each branch depending on the load (resistance) present.

An inductor is coiled wire that stores electric energy in the form of magnetic energy and resists changes in the electric current flowing through it. If current is increasing, the inductor produces a voltage that slows the increase and, if current is decreasing, the magnetic energy in the coil opposes the decrease to keep the current flowing longer. In contrast to capacitors, inductors allow DC to pass easily but resist the flow of AC.

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.