George Westinghouse
Electric power distribution

Westinghouse's interests in gas distribution and telephone switching led him to become interested in the then-new field of electrical power distribution in the early 1880s. Electric lighting was a growing business with many companies building outdoor direct current (DC) and alternating current (AC) arc lighting based street lighting systems. At the same time, Thomas Edison was launching the first DC electric utility designed to light homes and businesses with his patented incandescent bulb. In 1884, Westinghouse started developing his own DC domestic lighting system and hired physicist William Stanley to work on it. Westinghouse became aware of the new European alternating current systems in 1885 when he read about them in the UK technical journal Engineering. AC had the ability to be "stepped up" in voltage by a transformer for distribution and then "stepped down" by a transformer for consumer use, allowing large centralized power plants to supply electricity long distance in cities with more dispersed populations. This was an advantage over the low voltage DC systems being marketed by Thomas Edison 's electric utility which had a limited range due to the low voltages used. Westinghouse saw AC's potential to achieve greater economies of scale as way to build a truly competitive system instead of simply building another barely competitive DC lighting system using patents just different enough to get around the Edison patents.

In 1885 Westinghouse imported several Gaulard–Gibbs transformers and a Siemens AC generator, to begin experimenting with AC networks in Pittsburgh. Stanley, assisted by engineers Albert Schmid and Oliver B. Shallenberger, developed the Gaulard–Gibbs transformer design into the first practical transformer. In 1886, with Westinghouse's backing, Stanley installed the first multiple-voltage AC power system in Great Barrington, Massachusetts, a demonstration lighting system driven by a hydroelectric generator that produced 500 volts AC stepped down to 100 volts to light incandescent bulbs in homes and businesses. That same year, Westinghouse formed the " Westinghouse Electric & Manufacturing Company "; in 1889 he renamed it as "Westinghouse Electric Corporation".
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