Peak power means taking the maximum value of all the absolute values of all the samples. It's useful for preventing clipping of the audio.
Average power is the RMS (root-mean-square) of the samples. This is useful to determine how loud the audio sounds to human ears.
The value is negative because it is expressed in decibels, where 0 dB is equal to the maximum value of the audio system. It's a log10 scale, and the formula for conversion is:
db = 10 * log10 (level);
where db is decibels and level is the scalar value ranging from 0.0 to 1.0. So when the level is 0.0 (silent), the result is negative infinity.
If you want a "readable" format, you can use a level meter (UIProgressView or your own) where the max is 0.0 and the min is -60.0 (you can adjust depending on the noise floor). Once you're used to decibels, they make more sense than linear levels.