Last things first, the old NH can't switch to DC anything and still remain part of the NEC. It runs 25KV 60Hz as opposed to the 11KV 25Hz old Pennsy main but that's not a problem, newer locomotives employ inverters that eat just what you feed them, they don't care how it tastes. My best guess with the third rail is it feeds power control at the inverter output, basically runs the traction motors directly. DC traction is a very inefficient way to go even when running off catenary power. You get best efficiency and control using a variable voltage, variable current, variable frequency AC system like most other electric and Diesel-electric locomotives.
Eh, right, sort of, those railroad transmission lines don't have circuit breakers, they have fault sensors that operate huge switches. Here's one opening, VERY impressive!
http://www.youtube.com/watch?v=C-UTYzfNjKM Actually they don't usually arc like that, the arc quencher failed to operate. (;->) Remember the Pennsy installed the equipment in 1937 so it's old technology, today they use oil filled breakers that look like big tanks with ears. When it comes to city power, 13KV feeders use sensors and switches on the transformer primaries, the 4800V 600A secondaries use fuses not only at the substation but everything connected to them, branch feeders and transformers, the familiar pole pigs use fuses as part of a manual switch called a cutout. The neat part is how they operate. The fuse holder, often called the "fuse tube" or "door", which contains the interchangeable fuse element and also acts as a simple knife switch. When the contained fuse operates or blows, the fuse holder will drop open, disengaging the knife switch, and hang from a hinge assembly. This hanging fuse holder provides a visible indication that the fuse has operated and assurance that the down-stream circuit is electrically isolated.
About the weather, as of this writing 0100 GMT an electric train is rolling across north-central Jersey, NYC and LI. The caboose is just about at the Avenel / Carteret area and about to roll into Staten Island. It looks like South Jersey and Philadelphia are getting bombed...