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Live performances, need help figuring them out

Okay, so I am a bit confused about live performances. I'll just provide a real life example.

I've played two shows with a full band soon to be three, but I used my amp for those shows and the upcoming too (I know that for sure). Now, I was looking a place that offers live music, an open mic night to be more exact, but they said that NO AMPLIPHIERS are permitted, the instruments will be plugged in through their PA system. What is a PA system and what does it do exactly? Because I'm a little bit confused on why you cannot use an amp. Do you plug in your instrument in the PA and a sound board or mixer board controls all the guitars and vocals??? What does a PA do exactly?

Just to add, I do not play an acoustic bass or acoustic guitar, I play electric bass and electric guitar

This will be very helpful to me and I greatly thank anyone who helps me in this confusion I'm having.
 
Most likely this means that they want their performers to be on the quiet side and are expecting mostly solo acts with acoustic guitar and vocals. Also they probably don't want you using amps to minimize setup time because they'll let you play like two songs and then move to the next act on the list. You really should attend open mic at this place before you play there to make sure it's the kind of thing you WANT to play. Probably not.

http://en.wikipedia.org/wiki/Public_address