M-Guy,
A fan controller works in much the same way that a light dimmer does.
Varying the resistance of the rheostat, alters the charging time constant of a capacitor, that triggers the Triac, via it's Gate terminal.
The more pulses given to the Triac, the more current is "let through" to the load, in a given half cycle of AC current.
And hence, the faster the fan will turn.