A connection is created between the source and destination spreadsheet to transfer data. A simple connect or append creates one connection between the source and destination. A consolidate creates X connections between source and destination, depending on the number of source sheets you are consolidating.
Every time you run your connection, you are using one update.
Caveat with consolidate!
If you are running a consolidate connection that has 5 sources, you are using five updates and not just one.