Ac power has significant practical advantages over dc power in generation, transmission, and distribution. One major drawback of the single-phase circuit is the oscillatory nature of the instantaneous power flow p(t). The consequent shaft vibration and noise in single-phase machinery are rather undesirable. A three-phase circuit, on the other hand, under balanced conditions has constant, nonpulsating (time invariant), instantaneous power, the pulsating strain on generating and load equipment is eliminated.

Also for power transmission, a balanced three-phase system delivers more watts per kilogram of conductor than an equivalent single-phase system. For these reasons, almost all bulk electric power generation and consumption take place in three-phase systems.

The majority of three-phase systems are four-wire, wye-connected systems, in which a grounded neutral conductor is used. Some three-phase systems such as delta-connected and three- wirewye-connected systems do not have a neutral conductor. Because the neutral current is nearly zero under normal operating conditions, neutral conductors for transmission lines are typically smaller in size and current-carrying capacity than the phase conductors. Thus, the cost of a neutral conductor is substantially less than that of a phase conductor. The capital and operating costs of three-phase transmission and distribution systems, with or without neutral conductors, are comparatively much less than those of separate single-phase systems.

Ratings of three-phase equipment, such as generators,motors, transformers, and transmission lines, are usually given as total three-phase real power in MW, or as total three-phase apparent power in MVA, and as line-to-line voltage in kV.