You may be paying a monthly penalty fee to your electric utility for poor power factor.
Remember this: kW divided by kVA equals power factor
Is your firm a small company and trying to find hidden cashflow from a facility?
Is your firm medium sized, or ISO certified, or using six sigma methodologies, or utilizing Project Management, with efforts to move your firm to infrastructure sustainability?
Is your firm a property management group with hundreds of properties and your managers are trying to uncover best methods to save overhead and or cut costs as they relate to billable rent?
Is your company a conglomeration of many sites each with no control over their electric utility bill because it goes to the central payables office?
If so, please, read on…
Since you pay the utility bill which is formulated on the basis of energy consumed (kWh) and the reactive component of current does not register on a kilowatt‐hour meter,
many utilities impose a power factor penalty or peak demand (kVA) billing element in order to receive income for the total power they are required to deliver to a given customer. As the power factor drops the system becomes less efficient.
The Economics of Improving Power Factor
By Ed Kwiatkowski, BSEE, MS President, Staco Energy Products Company