It is probably a mistake to base the feasibility or payback interval by assumption of a utility’s tarriffs, or that they are the same as a neighboring utility. Power-factor clauses in tarriffs can be complicated.
[An example] “For calculating the power factor, the District will determine the ratio between kilowatt and reactive kilovolt-ampere (kVAr) by means of installed instruments. In any billing period when a customer’s maximum 15-minute reactive kVAr demand is in excess of 62% of maximum kilowatt demand in the current or previous 11 months, an additional charge for each reactive kVAr of such excess will be made. At the District’s option, the power factor may be determined by means of periodic tests. If determined by tests, the resulting power factor will remain in effect until a new determination is made.”
Sixty-two percent in the example equates to a PF of 0.85, which is a fairly ‘generous’ condition. Others have penalties outside of 0.97 lagging to 0.97 leading PF—Now that’s stiff “retribution.”
[This message has been edited by Bjarney (edited 10-05-2004).]
