AC power does form a closed loop circuit, primarily utilizing three-phase systems that involve three wires oscillating with a 120-degree phase difference, eliminating the need for a return line. The current in these systems balances out, resulting in zero net current at any given time, which is a significant advantage for efficiency and material use. In an AC circuit, electrons vibrate back and forth due to alternating voltage, meaning they do not travel far but oscillate in place. The energy is transferred from the generator through the live wire to the appliance and returns via the neutral wire, maintaining a closed loop. Overall, the operation of AC involves complex interactions of voltage and current that are essential for efficient power distribution.