Your class needs some help before you worry about the test methods. Here's just a few things I noticed:

1) You have a DML statement inside a for loop (the insert ckcs line). This is a bad practice, as it incurs a lot of overhead. Instead, create a list of Work_On_Circuit__c records and insert them all in one fell swoop. This will make your page run faster, and avoid governor limits.

2) I assume that workorder.location__c and workorder.cpe_location__c are selectable values, and that selecting a value should update the list of circuits. Your getter methods won't do this as it stands currently. You need to consolidate your queries into a single function, and call that function whenever you need to load or reload the list of circuits.

3) Your two circuit wrapper classes are redundant, and should be collapsed into a single class. If you need to distinguish between them, add a member variable that tracks the type of circuit that it is. It will make your test code easier.

4) Never hardcode values (i.e. a RecordTypeId) into your code. It's not dynamic, and you'll find your code won't migrate easily between organizations, if this ever becomes a concern (better safe than sorry!). Instead, use a much more portable version, such as "RecordType.Name = 'Some Record Type'" in your query, so that even if your migrate organizations, your tests won't fail.

5) In your test class, don't use existing records, but instead create dummy records as part of the test. This is so that some administrator somewhere down the road won't accidentally delete these records, and cause future tests to fail. Don't worry about cluttering up your database with test records, as they are only simulated data inserts, and will be rolled back when the test completes.

6) With just a few optimizations, I was able to consolidate your code from about 90 lines (about 3,100 characters) of non-blank, non-comment code to about 60 lines (about 2,100 characters) of code. This was done by consolidating loops, variables, and classes, combining like queries (with an if statement for loading the records into their respective variables), and a few other minor changes. No actual "functionality" was changed, though, so I expect you'd need a few more lines of code to handle some of the logic errors I saw.

Finally, getting to the test method, your code doesn't the wrapper class. Your test code should follow the general pseudo-code:

1) Insert some test locations

2) Insert some test circuits that use those locations

3) Create a new controller instance

4) Check circuits and offCircuits to verify that the list sizes match and that the individual entries match their respective test records. This is how your wrapper class will achieve 100% coverage

5) Test each page action to make sure the results are what you expect. Keep the save() function for last, and make sure that the records are inserted correctly. You'll need to do a query or two in your test method to verify that they were created correctly

Overall, your code is "almost, but not quite" there. 

Here's a modified version of your controller:

public class newWorkOrderWizardController {
	public Work_Order__c workorder { get; private set; }
	public Work_on_Circuit__c woc { get; private set; }
	public List<circuitWrapper> circuits { get; set; }
	public List<circuitWrapper> offCircuits { get; set; }
	public PageReference step2(){
		return Page.displaycircuits;
	}
	public PageReference stepBack(){
		return Page.createWorkOrder;
	}
	private loadCircuits() {
		circuits = new List<circuitWrapper>();
		for(Circuits__c ckt:
			[SELECT Id,Name, Circuit_ID__c,Service_Level__c,Circuit_Status__c,A_CPE_Location_LU__c,Z_Location_LU__c
			FROM Circuits__c 
			WHERE (A_CPE_Location_LU__c = :workorder.CPE_Location__c) OR
			(RecordTypeId = '01230000000LSRd' AND Circuit_Status__c = 'Active' AND Z_Location_LU__c = :workorder.Location__c)]) {
			if(workorder.CPE_Location__c = ckt.A_CPE_LOcation_LU__c) {
				circuits.add(new circuitWrapper(ckt,CircuitType.ONCIRCUIT,false));
			}
			else {
				offCircuitList.add(new circuitWrapper(ckt,CircuitType.OFFCIRCUIT,false));
			}
		}
	}
	public enum CircuitType { ONCIRCUIT, OFFCIRCUIT }
	public class circuitWrapper{
		public CircuitType cType { get; set; }
		public Circuits__c ckt { get; set; }
		public Boolean selected { get; set; }
		public circuitWrapper(Circuits__c c,CircuitType cirType, Boolean isSelected) {
			cType = cirType;
			ckt = c;
			selected = isSelected;
		}
	}
	public newWorkOrderWizardController() {
		loadCircuits();
	}
	public PageReference save(){
		insert workorder;
		List<circuitWrapper> allCircuits = new List<circuitWrapper>();
		allCircuits.addAll(circuits);
		allCircuits.addAll(offCircuits);
		List<Work_On_Circuit__c> newWorkOnCircuits = new List<Work_On_Circuit__c>();
		for(Circuits__c ckt:allCircuits){
			if(ckt.selected) {
				newWorkOnCircuits.add(new Work_on_Circuit__c(Circuit__c = ckt.id, Work_Order__c = workorder.id));
			}
		}
		insert newWorkOnCircuits;
		PageReference woPage = new ApexPages.StandardController(workorder).view();
		woPage.setRedirect(true);
		return woPage;
	}  
}

 Let me know what you think, and once your class is working, we can work on the test method.