MTH "G Gauge" (One Gauge) locomotives are designed to operate on AC or DC. When AC is used it's rectified, in the engine, to DC. When run on DC, the voltage "passes through".
I use DC for my "G Gauge" only because other brand locomotives are DC only. MTH uses the same PS2 boards for both "O" and "G".
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As for "O", the MTH Catalog, 2012 Volume 2, is about the newer PS3 System that is now standard. It does not use a battery.
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"Right out of the box,every Proto-Sound 3 M.T.H. engine is compatible with all operating systems: AC or DC, DCC, and our own Digital Command System (DCS). ----- Your Proto-Sound engine senses what kind of power is on the rails; just set it on the track and it runs."