Abstract: A power supply is disclosed for both arc welding and plasma cutting. The power supply includes an A.C. power source, a transformer having a primary winding receiving power from the A.C. power source and secondary winding. Power in the secondary winding is rectified by rectifier to provide a first output suitable for arc welding and a second output suitable for plasma cutting. A switch connected to the rectifier selects between the two outputs. Conventional power supplies employ an inductance for stabilizing the current in the plasma cutting power supply. According to another aspect of the invention, the power supply includes a circuit path in parallel to the inductance for passing additional current to the torch so that the open circuit voltage applied to the inductance required for sustaining the arc is reduced.