How Does Power Factor Correction Impact Your Utility Bill? (.PDF Download)

Your utility Power Factor is the ratio of the system’s Real Power and the Apparent Power (Eq. 1). This unitless factor ranges from −1 to 1. The Power Factor ratio aptly describes the type of storage elements in the circuit and the stability of the current-to-voltage relationship. More importantly, for utility companies, this ratio provides insight into a user’s power consumption habits, enabling them to apply fees related to lower value Power Factors (usually below 0.80 or 0

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