Capacitors consume active power and release reactive power. They also present a low impedance to harmonics in other words they attract harmonic frequencies. Thus, capacitor banks are installed in substations to:
Relays need to know the current magnitude – either for metering or protection. A current transformer (CT) fulfills this role, stepping down thousands of amps to (typically) 5A which is then fed to a relay.
Relays need to know the voltage magnitude – either for metering or protection. A voltage transformer fulfills this role – it steps down thousands of volts to 67V/115V in high voltage stations (at the medium voltage the VT’s step it down to 120V) which is then fed to a relay.