An AC generator is primarily classified as a voltage source rather than a current source. It operates at a constant RPM, providing a steady voltage determined by its physical design, which includes magnets and windings. While the current output varies with load changes, the generator maintains a constant voltage and frequency, which is essential for efficient power transmission. Electric companies utilize transformers to adjust voltage levels, as this method minimizes power loss compared to current-based systems. The discussion emphasizes that constant voltage operation is preferred for power distribution, as it allows for predictable frequency and efficient control of electrical devices. In practical terms, an ideal AC generator can be modeled as a time-varying voltage source in series with a small resistor, and while synchronous machines can function as either voltage or current sources, the grid's fixed frequency necessitates a voltage source approach.