An electric power system is the network of electrical components that are used to generate, transmit and distribute electric power for industrial and domestic uses. In another way it can be stated that electric power system is the network that supplies electric power from the power station to residential and industrial consumers. This power system is known as the grid. Power system can be divided into three stages: 1. Generation of electricity 2. Transmission system and 3. The distribution system A generating station generally uses the operation of a prime mover which is coupled to an alternator and at least an external exciter for the production of electric power. a. The prime mover may be a water turbine, wind mill or steam turbine. b. It converts energy from other forms into mechanical energy. c. The prime mover will rotate the armature winding situated within the magnetic field. d. Then, electrical energy will be generated by the alternator. e. The electrical energy produced by the electric power station is transmitted and distributed to the consumers with the help of conductors.