This document provides an explanation of the principles behind a BiTT (Toroidal Transformer) system. It discusses how the BiTT uses saturation of a small primary core to control flux flow through secondary cores. Most secondary flux travels through the unsaturated secondary cores, while a small amount flows through the saturated primary core. This allows the BiTT to borrow reactive power from the source on the primary side, while delivering real power to loads on the secondary side.