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I think that when my neighbor uses a contractor-grade miter saw, my overhead light in my office dims slightly for a brief amount of time (half a second) and then returns to normal brightness. Is this normal? Shouldn't power to my house be relatively isolated from other usage in the neighborhood? It's not a huge deal - just a little annoying.

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The dimming lights is caused by voltage dropping. This could definitely happen from others in your neighbourhood turning on large loads. Typically anywhere from a few houses to an entire block will share one transformer, so you are pretty much directly sharing the power with them.

If this happens frequently, contact your utility company. They will be able to check if your neighbourhood needs upgrades to maintain a stable voltage.

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