The principle of AC power conservation states that the complex, real, and reactive powers generated by the source are equivalent to the total complex, real, and reactive powers consumed by the loads. This principle can be illustrated through a simplified circuit model. The circuit's total impedance is calculated first, followed by determining the total source current. The complex power of the source is then calculated using the complex conjugate of this current and the source voltage. By separating the real and imaginary parts, the active and reactive power of the source can be derived. Next, the voltage drop across each load is calculated. The complex power is determined by taking the product of the conjugate current and the voltage drop across each section. From this, the real and reactive powers are deduced. When comparing all the calculated powers, it becomes evident that the power of the source equals the sum of the power of individual sections, confirming the power conservation principle. This principle holds true irrespective of the loads connected in series or parallel.