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Understanding Power Factor

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In an AC circuit, power is used most efficiently when the current is aligned with the voltage.

However, most equipment tend to draw current with a delay, misaligning it with the voltage. What this means is more current is being drawn to deliver the necessary amount of power to run the equipment. And the more an equipment draws current with a delay, the less efficient the equipment is.

Power factor is a way of measuring how efficiently electrical power is being used within a facility's electrical system, by taking a look at the relationship of the components of electric power in an AC circuit. These components are referred to as Real Power, Reactive Power and Apparent Power:

Real power (kW) the work-producing power that is used to actually run the equipment Reactive power (kVAr) the non-work producing power that is required to magnetize and start up equipment Apparent power (kVA) the combination of real power and reactive power

Calculating Power Factor

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As a commercial customer, it is important to understand how power factor is calculated, since you may be charged a reactive power fee if your facility's power factor is below 95%. The power factor triangle below illustrates how real power, reactive power and apparent power relate to each other to get the power factor angle. One way to get the power factor is by getting the cosine of the power factor angle.

The best way to calculate power factor is by using the following formula:

The example below shows a power factor rating of less than 95%, which means the customer would be responsible for a reactive power charge. Maximum Real Power for billing period = 1,000 kW Reactive Power at the time of maximum kW demand = 750 kVAr Apparent Power = SQRT [(1,000 kW)2 + (750 kVar)2] = 1,250 kVA 1,000 kW 1,250 kVA

Power Factor =

= 0.80 = 80%

Because the power factor is below 95%, a charge of $0.40 per kVar is applied to the bill. To lessen the charge, Orange & Rockland subtracts 1/3 of the kW (real power) when calculating for billable kVar (reactive power), as shown below. Billable kVar = 750kVar 1/3(1,000) = 416.7 kVar Reactive Power charge = 416.7kVar X $0.40 = $166.68

Why Improve Low Power Factor?

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Reactive power is one of the most significant ways that electricity is lost when it travels along power lines. The more reactive power that customers use, the more energy the electric system loses. This results in the use of larger equipment on the distribution system that otherwise would be unnecessary. There is also a corresponding increase in the amount of greenhouse gases that get released into the atmosphere. Fortunately, there are ways to reduce the amount of reactive power being lost through the system, by improving your power factor. Improving your power factor could be beneficial to you as a customer. Some of the benefits of improving power factor are:

Your utility bill will be smaller. Low power factor requires an increase in the generation and transmission capacity to handle the reactive power, so improving power factor will require less reactive power being drawn from the system. You won't be charged a reactive power fee if your power factor is above 95%

Your electrical system's branch capacity will increase. With low power factor, power losses can occur in your distribution system, and you may even experience voltage drops. This may cause overheating and premature failure of motors and other inductive equipment.

How to Improve Power Factor


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Here are some strategies for correcting your power factor: Minimize operation of idling or lightly-loaded motors. Avoid operation of equipment above its rated voltage. Replace standard motors as they burn out with energy-efficient motors. Power factor is also significantly affected by variations in load. A motor must be operated near its rated capacity to get the highest power factor. Install capacitors in your AC circuit. (illustration below shows how capacitors can help correct your power factor) Motor running without capacitors

. Without a capacitor, the motor is pulling reactive power from the electric grid. The more this power has to travel to reach the motor, the more it gets wasted due to losses along the way. This ultimately leads to a lower power factor and higher electricity bills when the power factor is below 95% at the facility.

Motor running with capacitors

On the other hand, an installed capacitor provides the reactive power that is needed to start up and magnetize the motor, thus eliminating the need to get it from the electric grid. Since you'll be using less electricity from the grid, you'll have a higher power factor and lower electricity bills.

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