Transformers take electricity of one voltage and convert it to another by using a primary winding connected to a power source and a secondary winding that outputs the electricity. They work on the principle of mutual induction between the windings around a laminated iron core. Step-up transformers have fewer turns in the primary winding than the secondary to increase voltage, while step-down transformers have more turns in the primary than secondary to decrease voltage. Key components of transformers include the core, windings, transformer oil for insulation and cooling, an oil conservator, breather, cooling tubes, Buchholz relay for protection from internal faults, and an explosion vent to safely release pressure from explosions.