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.”
Actually, most electric utilities end up doing the same thing but it looks differently. We have a line at 85% power factor. In other words we bill for a power factor that is worse than 85%. However, we will give a credit for power factor that is better than 85%. The bottom line is the same as your example but it sounds better. I have seen another electric utility that sets up the billing to charge for the kVA instead of %PF. Of course you can cut the kVA by correcting the PF.
![[Linked Image]](https://www.electrical-contractor.net/ubb/biggrin.gif)
(edited to add the signature line)
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Charlie Eldridge, Indianapolis,
Utility Power Guy[This message has been edited by CharlieE (edited 10-05-2004).]
