Power-Factor Correction

Power-factor correction has become a commercial problem of major importance, and technical knowledge and corrective equipment are available to make correction a part of the activities of the electrical industry. Field studies on several properties show power-factor correction can be obtained without difficulty. Conditions can be improved by requiring all new business to be installed for high power-factor operation and a cooperative movement should be made to bring about this condition. The situation on existing systems can be improved in either a wholesale or retail manner depending upon conditions. Cost analyses should be made to determine the type of correction to use and to decide upon the location of corrective equipment. But they should not be used, for rate making purposes. A study of the types of systems in existence shows that in general correction is most economically and most effectively instituted at the loads. Also experience indicates the greatest effect of correction is to improve voltage regulation and service quality. Different types of rates and billing methods have been used, but a study of the art shows the kv-a. demand charge and the kw. energy charge can be used most successfully to secure power-factor correction.