Thanks everyone for the clarification. I remember reading somewhere that they weren't insulated - that birds don't get fried if they touch one b/c the current passes "through" and doesn't complete a circuit... until the bird bumps a second line.
OK, so the transformer, as I understand it, is to help insulate the house and the power lines from each other?
Transformers do a bit more than that.
Electricity is interesting stuff, and these people do a better job explaining it than I could.
From the Govt
http://www.eia.doe.gov/basics/electricity_basics.htmlFrom the Central Iowa Power Cooperative
http://cipco.apogee.net/foe/home.aspand then a little self test from Bell for those who think they know a lot.
I know that I would fail this one, but I am not an electrician.
http://www.asisvcs.com/publications/pdf/710041.pdfI think it is a good thing to have a decent understanding of the basics in case you are ever near downed lines or need to hook up a simple circuit, just for safety's sake.