Converts AC to DC power, so you can use AC transformers to power DC turnouts.
Ok, so it's for the turnouts. Glad I didn't buy one today. My other thought was that it was so one could power traditional in building lighting to the Kato power pack.
You might be able to do that it. It just transforms (this is a guess!) probably something like a 19VAC line into a 12VDC. If your lights want 12VDC, and you have a throttle that outputs the same low-voltage AC current for accessories (again, I don't actually know what this converts from), you might find it handy.