Electric Bill Savings
There are a diversity of methods that the various utility companies across North America employ to penalize their customers for poor power factor. Below are the three most common penalties and how power factor correction will impact their billed costs:
Are conditional utility charges applied to demand charges and/or monthly consumption charges. They are based on the difference between your measured power factor and your utilities’ minimum power factor requirement (usually 85% – 95%). Our installations are designed to help customers achieve 95% power factor resulting in the predictable reduction or elimination of power factor adjustments and penalties.
Are conditional utility charges applied when the percentage of reactive load [kVAr] exceeds a pre-established threshold. Each unit is designed to mitigate a specific amount of reactive current [kVAr] in your AC power system. The power factor correction installation is engineered to reduce your reactive (lagging) current load, predictably reducing or eliminating any excessive kVAr adjustments or penalties.
Is a measurement metric that has the power factor adjustment built-in. The kVA measurement is always higher than the corresponding kW measurement because it has the additional reactive currents included in the measurement. Our units reduce the total current through the utility meter by eliminating the majority of the inefficient reactive currents. When the units eradicate the reactive currents, the measurement of kVA is reduced a predictable and measureable amount.
Power factor correction equipment changes the current/power consumption at a location by minimizing the measureable quantity of (reactive) current flowing through the utility meter. It also improves uncorrected AC motor efficiency. Motors cool improving their longevity while exhibiting a measureable reduction in kW (real power). It is possible to predict the magnitude of the kW savings by analyzing each AC motor at a location to understand its contribution to a total kW savings; however, it is significantly more cost effective to measure the change in kW empirically with the unit activated vs. deactivated when installed.