Transformers can step-up or step-down AC voltage, this allows the power companies to produce and transmit electricity at extremely high voltage, because this reduce the amount of energy lost as heat due to resistance, and then it can be steped-down at various electrical substations, in order to provide the correct voltage for various consumers.(commercial, domestic, etc)What is the significance of transformers in power transmission?Electrical power lost to resistance is I^2R where I is current and R resistance.
So it is not done so much as to step up voltage as to reduce current; voltage rises to keep power the same.
While in the US residential voltage is 115-120 VAC, with some 220 VAC, transmission lines run 17.6 kV and up.
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