Power factor is
a way of measuring the percentage of reactive power in an
electrical system. Reactive power represents wasted
energy...electricity that does no work. Reactive power is
the result of electrical current interaction with inductive
loads like motors, transformers, fluorescent lights, arc
welders and induction furnaces. Electric systems with many
motors exhibit low power factor and increased conductor and
transformer losses. Power factor can be improved by the
addition of shunt capacitors.
Improving power factor can reduce power
losses and free up the capacity of the existing transmission
and distribution equipment for both utilities and end-users.
Raising power factor to 95 percent and above is a proven way
of increasing the efficient use of electricity. End-users
enjoy reduced power bills and improved voltage conditions.
The utility benefits from lower line and transformer losses,
released system capacity and improved factor.