What component allowed AC power to be transmitted at high voltages and stepped down for residential use?

Answer

The transformer.

The transformer is a vital component in an AC electrical grid because it allows for the manipulation of voltage levels. By stepping up the voltage to very high levels, electricity can be transmitted over extremely long distances with minimal loss. At the destination, the voltage can then be stepped down to safe, usable levels for homes and industrial machinery, which is a capability that direct current systems lacked during that era.

What component allowed AC power to be transmitted at high voltages and stepped down for residential use?

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Biography of Nikola Tesla, Who Inventor of (AC) Electricity - YouTube

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