Anyone here installed power factor correction before? Did it pay off for your customer? Did it pay off for YOU?

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I did a fair bit of it on oil wells a few years ago. My understanding was that it paid off for the customer in about 3 months, running 24 hours a day. With over 600 wells for one customer, how could it not pay off for the electrician?

In the case of an oil well, it is easy for the customer to track the savings (one meter per well with nothing else on the meter).

If you need to spend hours talking the customer into trying one, it may not pay off for you, and if they have a lot of other equipment, they may not notice the savings.

[This message has been edited by twh (edited 06-16-2004).]

Is the customer being billed on a KVA demand?
Can you post the present power factor and cost per KVA?

Without careful study of the billing utility’s rate schedule and setting up a spreadsheet, there is almost no way to tell.

No one building in particular. Just wondering in general.

Most utilities correct to a certain margin, (About 1)don't they? Most urban, and sub-urban areas at least. Around here they do, I see thier cap's all over the place.

e57,
The capacitor banks used by utilities are usually only used to correct the p.f on thier Distribution systems, to correct the Inductive effects of transformers, etc.
Over here, large users of electricity are penalised by higher Tariffs, that have a power factor under a certain figure (0.65 lagging, I think).

In situations like that I guess it would pay off, wouldn't it?

Does the standard kWH meter register watts or VA? I've always been under the impression that it measures actual watts, not VA.

Most tariffs, IIRC, start spanking commercial users as their power factor slides below .80....

Such customers will typically have dual metering mandatory -- 1000A in my area....

When the PoCo sees poor power factor they bill 'em under their tariffs.

You can read the meters, yourself. If the powerfactor drops to .75 -- the prospect is getting dinged, one way or the other.

Inductive loads trigger this, in my area, think air conditioning....loads of magnetic ballasts would perform likewise.

Poor powerfactor triggers major capital expentitures by the PoCo. They have to upsize everything up the line until it is corrected.