This clip explains circuit bending, which is an old form of hacking that involves someone bending and hacking at circuits. This causes the circuits to perform in ways not intended by the user. For example, circuits can be bent to create strange noises and change functionality.
The cat is playing with the Christmas lights and pulls the plug out of the wall. Clark notices that the tree is no longer lit up and plugs in the lights again, which ends up shorting the circuits in the house and electrocuting the cat. Russ flips the circuit breaker to restore electricity to their home.
Clark is trying to turn on his festive house lights but is unable to do so after several attempts. His mom walks in the garage to turn the light on, and the house suddenly lights up, causing the rest of the neighborhood to dim. When Clark's mother turns the switch off, the outside lights turn off as well. Ellen finally realizes the problem and turns the light switch in the garage back on to keep the house aglow.