The power factor expresses how effectively a facility uses electric power. It is the ratio of the actual power (KW) used by the customer divided by the total power (KVA) flowing to the facility. Many utilities add an additional charge to the monthly electric bill if the power factor is lower than the threshold value listed in the utility’s electric tariff. For example, many customers with a power factor below 95% are charged a penalty by the utility.
Typical large commercial buildings operate at about 82-88% power factor, and many industrial facilities record a 60-85% power factor. The power factor correction is typically applied to the kilowatt demand segment of the utility bill, and may significantly increase that portion of the monthly electric bill.
Power factor charges can result in a 5-15% or greater increase to the demand part of the electric bill. We can eliminate these charges with equipment designed by our expert staff. A PF correction project can provide several advantages, including eliminate expensive added charges, increase electric power equipment capacity, such as transformers or load center panels, improve voltage to electric loads and smooth out power quality variations, reduce resistance losses in the customer’s power distribution system
This might include a new electric power pole equipped with power factor capacitor or power factor controller equipment, and mounted near the incoming utility meter, or a metal-enclosed capacitor system positioned in the main electric room of the facility or at individual motors. We provide a written proposal that identifies the estimated monthly power factor calculation, the project total cost, and economic indicators.
We can also implement a proposed power factor correction project, structured to meet your needs. This process can be for equipment and engineering support only, or can include installation and commissioning (turnkey) services with a single-source responsibility.