Power Factor and Power Quality

Reactive power does no useful work and still has to be carried by the wires, which is why utilities bill for it. A low power factor shows up as an explicit penalty line, as a kVA-based demand charge, or as a multiplier applied to billed kilowatts, depending on the tariff — and the three are not equivalent, so a correction that pays back on one schedule may not on another. This section covers the power triangle, how to read a power factor penalty clause, capacitor bank sizing and the harmonic risks that come with it, active correction, and how variable frequency drives interact with displacement power factor. Also here: voltage level discounts, transformer ownership credits, and what primary metering changes on the bill.