Per-unit: the transformer ratio vanishes
Drag the ratio and compare the two
One and the same load-side impedance is referred to the source side. The upper bar is the ohm value, which grows with the square of the turns ratio a, and the lower bar is the per-unit value. Dragging the handle changes a, and the ohm bar swings widely while the per-unit bar does not budge from its place.
A ratio to a base
The per-unit system expresses voltage, current, impedance and power each as a ratio to its own base value. Choose one base power S_base for the whole system and a base voltage V_base for each voltage level, and the impedance base is Z_base = V_base²/S_base, while the per-unit value of any impedance is Z_pu = Z/Z_base. Every quantity becomes a tidy dimensionless number near 1, which makes comparison and calculation easy.
The same across a transformer
The key lies in choosing the base voltages according to the transformer turns ratio. Then the per-unit value of the same physical impedance is exactly the same whether seen from the source side or the load side. In ohms, referring multiplies by the square of the turns ratio, a², and changes the value greatly, but in per-unit the same a² multiplies the base impedance as well and cancels out. That is why the upper bar you dragged swung with a² while the lower bar did not budge.
So the system unifies into one
Because the transformer ratio disappears, impedances at different voltage levels can simply be added and compared once they are in per-unit. That is also why generator and transformer nameplates give impedance in % or per-unit, and why load-flow and fault calculations no longer need tedious conversion at every voltage level: the whole system becomes one impedance diagram without transformers. The per-unit system is not mere notation but the language that makes system analysis possible.
Back to the first screen
The more the transformer ratio a was dragged, the more the upper ohm bar swung with a², yet the lower per-unit bar did not budge from its place. The same a² multiplies both the referred impedance and the base impedance, so it cancels out in per-unit. In the language of ohms the value jumps at every transformer, but in the language of per-unit the transformer becomes invisible, so the whole system can be handled as a single impedance diagram without transformers.
With impedances unified in per-unit, it is time to put numbers on what happens when current flows through that line impedance. The next unit (PW-C3) covers voltage drop and power loss: how the difference between sending-end and receiving-end voltage depends on the load current, the line Z and the power factor, and why the I²R loss that line resistance eats up shrinks as the voltage is raised for the same power.