And let's not lose sight of the fact that heating in wiring or a connection is due to P = I*I*R or I^2*R.
Any resistance in a circuit means a loss of power to a load such as an appliance.
A bad or oxidized connection adds resistance to a circuit which means a heating (temperature rise) at that bad connection.
Below is an illustration of a Breaker Box or, "Load Distribution Center." Most residential breaker boxes are now 200 Amp service minimum.
For 120VAC circuits, the Black wire (called the "hot" wire) comes from the circuit breaker.
The White wire (Neutral) connects to the internal Ground Bus (Neutral Safety Bus) as does the Safety Ground (bare wire).
All three wires then travel on to the "Branch" circuits (loads, outlets, lights, etc.).
Don't be fooled by the term, "Neutral Wire." The Neutral wires carries current as does the Black 'Hot" wire and there is a voltage across the Black and Neutral (White) wires of 120VAC.
Also, across the Black Wire and Safety Ground (bare wire) there is voltage of 120VAC as measured on an AC voltmeter.
However, the Safety Ground (bare wire) carries no current unless there is a fault such as a short, say at the outlet.