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Electrical Systems: Power Factor Correction

Resistive devices, like electric resistance heaters and incandescent lights transform all the power supplied to the device into heat or useful energy. Inductive devices, like motors, use some of the power supplied to the device to energize the inductive windings and create a magnetic field. This power, called reactive power, is alternately stored and given up by the windings, but is not used to do actual work. When this happens, the line supplying power to the device now carries the actual power used by the device and the reactive power created by the device. Actual power used by the device is measured in kW, reactive power created by induction devices is measured in kVAr, and the apparent power in the supply lines is measured in kVA. The mathematical relationships between these types of power are described by the “power triangle” shown below. For example, Ps = (Pa2 + Pr2)1/2

Ps = supplied power (kVA) Pr = reactive power (kVAr) θ Pa = actual power (kW)

The ratio of the actual power consumed by equipment (Pa) to the power supplied to equipment (Ps) is called the power factor. PF = Pa / Ps = kW / kVA = cos θ Devices which generate/require large amounts of reactive power in relation to actual power consumed have low power factors. Such devices include: • • • Motors HID and fluorescent lights with low PF ballasts Devices which convert AC power to DC power such as: • DC drives • Welding machines • VFDs • Induction furnaces

Fully loaded motors generally have a power factor of about 80%. However, if the motor is under loaded, the fraction of reactive power (for the coil) to actual power (for mechanical work) increases and the power factor decreases.

Two potential problems are associated with low power factor. First many utilities have explicit or implicit charges for low power factor. Second, low power factor increases the current, and hence losses, in transformers and the electrical distribution system. These losses cost money and generate excess heat in the electrical distribution system, which may shorten equipment lifetime or cause production shut downs. These potential problems are discussed in the sections that follow. Power Factor Charges Many utilities charge for low power. To measure power factor, the most common type of utility meter measures the total kVAr-hours and kVA-hours over the billing period and calculates the average power factor as: PF = Cos [ ArcSin (kVArh / kVAh) ] The most common methods of charging for low power factor are: 1. Adding a demand penalty when the power factor dips below a set amount (usually 90%) For example: the Cinergy DS rate specifies a demand penalty of:  0.9 - PF  kWactual   when PF < 0.9  PF  If actual power was 100 kW, the power factor was 80%, and the avoided cost of demand were $15.67 /kW, the monthly power factor charge would be:  0.9 - 0.8  100 kW   = 12.5 kW  0.8  12.5 kW x $15.67 /kW = $196 2. Basing the demand charge on the supplied power Ps (kVA), rather than the actual power used Pa (kW). For example, assume billing demand is based on kVA rather than kW and the demand charge is $15.00 /kVA-month. If actual demand was 100 kW, the power factor was 80%, the implicit monthly power factor charge would be: kVAPF = 80% = kW / PF = 100 kW / 0.8 kW/kVA = 125 kVA kVAPF = 100% = kW / PF = 100 kW / 1.0 kW/kVA = 100 kVA Penalty = $15 /kVA-month x (KVAPF = 80% - KVAPF = 100%) Penalty = $15 /kVA-month x (125 kVA – 100 kVa) = $375 /month

8)] = 75 kVAr 75 kVAr x $0. The quantity of line losses associated with low power factor correction can be calculated as follows: LL1 = Line loss before power factor correction LL2 = Line loss after power factor correction % Line Loss Savings = (LL1 – LL2) / LL1 LL1 = I21R1 = (kVA1/V1)2 R1 =[(kW1/PF1) / V1]2 R1 = [kW2 R / V2]1 / PF12 Thus: LL2 = [kW2 R / V2]2 / PF22 Assuming everything remains constant except for the power factor: [kW2 R / V2]1 = [kW2 R / V2]2 = [kW2 R / V2] And. if the power factor were improved from 80% to 90%.3. in the wiring and electrical distribution equipment. % Line Loss Savings = (LL1 – LL2) / LL1 % Line Loss Savings = [(kW2 R / V2) / PF12 – (kW2 R / V2) / PF22] / (kW2 R / V2)1 / PF12 % Line Loss Savings = [1 / PF12 – 1 / PF22] / 1 / PF12 % Line Loss Savings = 1 – (PF1/ PF2)2 For example.30 /kVAr = $23 Power Losses and Excess Heat Generation In addition to possible power factor charges. Basing part of the overall charge on the reactive power kVAr. then the power factor charge would be: Pr (kVAr) = 100 (kW) x Tan[Cos-1(0. The relationship between reactive and actual power is: Pr (kVAr) = Pa (kW) x Tan[Cos-1(PF)] If the actual power was 100 kW and the power factor was 80%. which increases as power factor decreases. and hence heat gain.30 per kVAr. the Dayton Power and Light General Service Primary Rate specifies a charge of $0. The excess line current results in increased resistive losses. For example. the percent line loss savings would be: . low power factor also results in excess current in the electrical distribution system upstream from the device.

For example. but there is little documented evidence of this in the open literature. the total power savings from correcting the power factor would be: 2% x 21% = 0. Sizing Capacitors and Estimating Savings Capacitors work by canceling reactive power and current on the primary or upstream side of the capacitor. since under-loaded motors have low power factors. installing a capacitor in the power supply line to the motor would reduce reactive power and line current on the primary side of the capacitor. installing capacitors directly upstream from low-power-factor loads reduces line current throughout the plant’s electrical distribution system. the heat generation in upstream electrical distribution equipment would be reduced by 21%. such as high power factor lighting ballasts avoid or replace dramatically oversized motors. . total energy savings are typically small since line losses are small.42% Some manufactures of power factor correction equipment claim that actual losses are much greater than those calculated here. Thus. it is generally in the client's interest to maintain a relatively high power factor. Although percent line loss savings are relatively high. then power factor correction could mitigate this problem. If the electrical circuits are fully loaded and tripping due to excess current. consider adding electrical capacitors. Because of these effects. if a motor operates at 70% power factor.% Line Loss Savings = 1 – (PF1/ PF2)2 = 1 – (80%/ 90%)2 = 21% In addition. To maintain a high power factor: • • purchase equipment with high power factor ratings. whereas installing capacitors directly down stream of the utility meter at the electrical service entrance to the plant. If power factor is still a problem. For example. but would not change the line current on the secondary (motor) side of the capacitor. This may or may not be significant. but will not reduce line losses and overheating throughout the plant. if line losses are 2% of the total power draw. results in power factor correction for utility billing purposes.

3. Capacitors are sized by the amount of reactive power (kVAr) they can cancel.000 hours and may introduce voltage transients to the downstream equipment. 4. “Stepped” capacitors have internal controls that adjust the amount of reactive power compensation. you would not get credit for the power factor correction from 95% to 100%. Adding too much capacitance can push the system from “lagging” to “leading”. (Other utility meters would read a power factor of 105% as 100%). Subtract the recommended capacitance (kVAr) from recorded (kVAr) for each month. Although leading power factor does not harm equipment. adding too much capacitance may change the power factor from 95% to 105%. the substantially lower cost of oil-filled capacitors make them much more popular than gas-filled capacitors. filter voltage transients. are non-flammable and non-toxic.0 as possible. A simple method to size the amount of capacitor kVAr required is described in the steps that follow: 1. Nitrogen and helium gas-filled capacitors last about 120. recommend additional capacitance equal to minimum monthly kVAr during the past 12 months. we recommend a conservative approach to power factor correction in which we never overcorrect the power factor past 100%. However. the oil is potentially flammable and may contain toxins requiring special disposal. Oil-filled capacitors typically last about 60. Simple capacitors are sized to compensate for a fixed amount of power.000 hours. In addition some meters may read a leading 105% power factor as 95%. for example. To increase PF as close to 1. using the reactive power calculated in the previous step. This approach minimizes the possibility of adding too much capacitance.Primary side of capacitor Capacitor Secondary side of capacitor Motor kVAprimary < kVAsecondary PFprimary > PFsecondary The two primary types of capacitors are oil-filled and gas-filled. This difference represents the reactive power (kVAr) if the recommended capacitance were added. Find kVAr for each month: Pr (kVAr) = Pa (kW) x Tan[Cos-1(PF)] 2. In addition. If so. Because of these reasons. purchasing excess capacitors is expensive and serves no useful purpose. Recalculate PF. These costs represent the costs if the recommended capacitance had been added. kVA or kVAr and electricity costs for each month. .

6.5. Calculate savings as the difference between the actual costs and the costs calculated in the previous step. we note that the installed cost of capacitors is about about $20 /kVAr .$50 /kVAr. depending on control complexity and size. Examples follow: . To estimate the implentation cost.

This causes a portion of the energy to return to the source.3212. All Power is usable. which are rated in terms of kVAr.3 Simple Payback 90 months Analysis Electrical equipment that generates inductive loads. Power factor of 0. Inductive loads cause the current waveform to lag behind the voltage waveform.com) The diagram below shows the relationship between the various types of power: supplied power (kVA). creates current that is not in phase with the current supplied by the electric utility. Low power factor can be corrected by adding capacitors.305 $46. hence leaving less usable power for the equipment. kVA (power supplied by utility) kW PF = kVA kVAr (measure of unused power) kW (actual power used by machines) .AR x: Consider Installing Capacitors to Improve Power Factor Annual Savings Project Cost CO2 Resource Dollars Capital Other Total (tonne) Electrical Fees None $12. and actual used power (kW).000 $92. Unusable power is created. such as motors. Most utilities charge for low power factor. (Source: www.wikipedia. The power associated with this unusable current is called reactive power (kVAr). The quantity of each type of power can be calculated using trigonometric relations defined by the power triangle. a higher supply power (kVA) must be generated by the utility in order to meet equipment needs. Power Factor of 1. The ratio of power consumed by equipment (kW) to total power in the electrical lines (kVA) is called the power factor.000 ARC: 2. Because some energy is returned to the source.000 $46.71. reactive power (kVAr).

300 2.015 $1.85 0.025 $1. kVA. The utility bills summary shows actual demand (kW) and your current lagging reactive demand (kVAr).292 4.566.300 kVAr of capacitance would increase your average annual power factor from 0.85 0.026 $1. Savings would be achieved if the power factor were increased from 0.057 2.240 4.614 2. According to your rate structure.138 2.300 kVAr of capacitance to improve the average power factor.85 $0.85 to 1. Estimated Savings The data listed below is extracted from the utility bills for the years 2006 and 2007.669.00 0.219 4.84 0. The power factor can be calculated using the following relationships: PF = kW / kVA = cos (tan-1 (kVAr/kW)) (1) Reactive power is a measure of the unused power in the lines.00 1.138 2.300 2.305 .584.136 2.138 2.85.624 2.026 $1.145.026 $1. the power factor charge is about $0. kW.48 /kVAr in excess of 10% of billed demand.290 31.00 1.48 $0.48 $0.026 $999 $1.00 1.48 $0.138 2.235 4.48 $0.534 2.300 2.719 2.48 $0.612 2.235 4.931 2.623.234 2.311.217 2.48 $0.00 1.443 4.86 0.48 $0.00 1. the current power factor averages about 0.247 2.616.300 2.300 2.114 2.300 2. As indicated in the table below.612 2.662 2.739 2.300 2.081 4.540 2.0.48 $0.217 4. installing 2.780.48 $0. and supplied power.00 1.00 1.300 2. Savings are calculated as the product of power factor charge ($/kVA) and the current billed reactive demand (kVA).00 1.48 $0.85 0. Recommendation We recommend considering adding an additional 2.634.00 Savings ($/Period) $991 $987 $1.936.85 0. the power factor charge is about $0.86 0.185 4.300 2.026 $1.135 2. The reactive power can be calculated using the following relationship: Reactive Power (kVAr) = kW x tan (cos-1 (PF)) (2) The supplied power (kVA) can be calculated from the reactive power (kVAr) and power factor from the following relationship: kVA = kVAr/sin (cos-1(PF)) (3) According to your rate structure “Large General Service Rate”.Power factor is ratio of the actual power.235 4. Meter Reading Date 8/27/07 9/26/07 10/26/07 11/27/07 12/27/07 1/25/08 2/26/08 3/27/08 4/25/08 5/27/08 6/25/08 7/25/08 Tot/Avg Billed Unit Power Metered Actual Actual Lagging Power Proposed Reactive Factor Consumption Demand Reactive Factor Capacitance Demand Charge (kWh/period) (kW) Demand (kVAr) (kW/kVA) (kVAr) (kVAr) ($/kVA) 2.081 2.0 (kW/kVA).85 0. Your utility company charges for all kVAr in excess of 10% of the billed demand.48 $0.538 2.825 2. According to the utility bills.728 2.300 New Reactive Demand (kVAr) 238 232 419 290 312 312 324 312 312 240 314 439 312 New Billed New Power Reactive Factor Demand (kW/kVA) (kVAr) 0 0 1 0 0 0 0 0 0 0 0 17 2 1.138 2.84 0.735 2.789 2.300 2.612 2.078 $12.85 0.901 2.532 2.138 2.612 0.959.85 0.545 2.235 4.86 0.065 2.653.85 (kW/kVA) to 1.300 2.48 per kVAr per month.99 1.612 2.00 1.483.251 4.590 2.238 4.300 2.00 1.078 $1.48 2.262 2.48 $0.

Estimated Implementation Cost Based on previous experience. Estimated Simple Payback ($92. Therefore.300 kVAr of additional capacitance would be sufficient to avoid almost all power factor penalties.300 kVAr of capacitance. Hence.000 / $12. simple capacitors can be installed for about $40 per kVAr.300 kVAr x $40 /kVAr) = $92. the estimated implementation cost would be about: (2. and the savings from installing additional capacitance would be about $12.305 per year.305 /year) x 12 months = 90 months .000 We estimate that about 50% of this is for materials and 50% for labor.The table shows that 1. we propose adding an additional 2.

Most utilities charge for low power factor.250 ARC: 2. The total power in the line (kVA) includes both the useable (kW) and the reactive power (kVAr). both on-peak and off-peak power factors less than 0. Low power factor can be corrected by adding capacitors. and actual used power (kW). The power factor can be calculated using the following relationships: PF = kW / kVA = cos (tan-1 (kVAr/kW)) The reactive power can be calculated using the following relationship: Reactive Power (kVAr) = kW x tan (cos-1 (PF)) (2) (1) The total power (kVA) can be calculated from the reactive power (kVAr) and power factor from the following relationship: kVA = kVAr/sin (cos-1(PF)) (3) In the “Utility Analysis” section of this report. The ratio of power consumed by equipment (kW) to total power in the electrical lines (kVA) is called the power factor.537 $10. The quantity of each type of power can be calculated using trigonometric relations defined by the power triangle.625 $21.AR x: Install Capacitors to Improve Power Factor Annual Savings Project Cost CO2 Resource Dollars Capital Other Total (tonne) Electrical Fees None $26. kVA ( total power ) kW PF = kVA kVAr ( reactive unus able power) kW (actual power used by machines) Power factor is ratio of the actual power. generates current that is not in phase with the current supplied by the electric utility. The power associated with this unusable current is called reactive power (kVAr).9 during onpeak is: . The cost for power factor below 0. such as motors.3212.625 $10. kVA. and total power.3 Simple Payback 10 months Analysis Electrical equipment that generates inductive loads. The diagram below shows the relationship between the various types of power: total power (kVA). kW.9 increase the billed demand. reactive power (kVAr). which are rated in terms of kVAr.

= (measured on-peak kW) / (on-peak PF) x 0.003 984 968 996 997 989 1.93 0.371 $2.146 1.93 On-peak Supplied Power (kVA) 947 939 919 910 867 896 864 860 881 884 868 902 895 Off-peak Supplied Power (kVA) 928 950 915 902 860 888 856 882 883 886 853 914 893 On-Peak Reactive Power (kVAr) 389 372 368 355 309 304 316 278 314 311 323 315 330 Off-Peak Reactive Power (kVAr) 349 396 362 332 283 322 288 305 337 318 315 350 330 On-Peak Billing Demand (kW) 864 862 842 838 810 842 804 814 823 827 806 845 831 Off-Peak Billing Demand (kW) 0 0 0 0 0 0 0 0 0 0 0 0 0 Calculated Power Factor Cost ($/period) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 .106 1.157 1.098 $1.537 The on-peak and off-peak reactive power (kVAr) measured at the meter will be reduced by 425 kVAr per month by installing 425 kVAr of capacitance.9 x (on-peak demand cost) The cost for power factor below 0.76 0.75 0. Therefore.73 0.192 1. reactive power (kVAr).74 On-peak Supplied Power (kVA) 1.73 0.094 $2.74 0.103 1.9. the annual power factor cost would be about $0 per year.076 1.73 0.537 per year.94 0.[(measured on-peak kW) / (on-peak PF) x 0.9 during off-peak is: = {[(max kW) / off-peak PF x 0.73 0.115 1.94 0.093 1.145 1.117 1.76 0.92 0.93 0.123 Off-peak Supplied Power (kVA) 1.603 $2. power factor (kW/kVA).93 0.74 0.084 1.94 0.92 0.177 $1. Estimated Savings The table below shows on-peak and off-peak actual demand (kW).076 1.93 0.402 $2.011 Off-Peak Billing Demand (kW) 0 16 0 0 0 1 0 25 10 4 0 21 6 Calculated Power Factor Cost ($/period) $2.75 0.030 984 1.74 Off-Peak Power Factor (kW/kVA) 0.112 1.174 1. The on-peak and off-peak power factor remains lower than 0.73 0.937 $2.041 1.114 1.91 0.74 0.123 1.057 1.340 $2.093 1. Using the rate structure form the “Utility Analysis” section of this report.73 0. Meter Reading Date 9/11/06 10/10/06 11/8/06 12/11/06 1/12/07 2/12/07 3/12/07 4/12/07 5/11/07 6/12/07 7/12/07 8/10/07 Tot/Avg Days 32 31 29 33 32 31 28 31 29 32 30 29 367 On-peak Off-Peak Demand Demand (kW) (kW) 864 862 842 838 810 842 804 814 823 827 806 845 825 860 864 840 838 812 827 806 827 817 827 793 845 830 On-peak Power Factor (kW/kVA) 0. 425 kVAr of capacitance will raise the on-peak and off-peak power factor above 0.157 1.93 0.077 1.143 $26.74 0.94 0.068 1.93 Off-Peak Power Factor (kW/kVA) 0.151 1. This is depicted in the table below.73 0.75 0. and billing demand (kW).74 0.93 0.75 0.9 for the entire year. Meter Reading Date 9/11/06 10/10/06 11/8/06 12/11/06 1/12/07 2/12/07 3/12/07 4/12/07 5/11/07 6/12/07 7/12/07 8/10/07 Tot/Avg Days 32 31 29 33 32 31 28 31 29 32 30 29 367 On-peak Demand (kW) 864 862 842 838 810 842 804 814 823 827 806 845 825 Off-Peak Demand (kW) 860 864 840 838 812 827 806 827 817 827 793 845 830 On-peak Power Factor (kW/kVA) 0.885 $2.92 0.95 0.93 0.011 1.93 0.122 On-Peak Reactive Power (kVAr) 814 797 793 780 734 729 741 703 739 736 748 740 755 Off-Peak Reactive Power (kVAr) 774 821 787 757 708 747 713 730 762 743 740 775 755 On-Peak Billing Demand (kW) 1.92 0.92 0.9] .187 1.74 0.73 0.130 1.165 $2.322 $2.94 0.92 0.75 0.94 0.099 1. the cost for this low power factor is about $26.74 0.74 0.91 0.93 0.107 1.73 0. supplied power (kVA).9]} x (off-peak demand cost) Recommendation We recommend considering adding an additional 425 kVAr to improve the average power factor.

250 We estimate that about 50% of this is for materials and 50% for labor. simple capacitors can be installed for about $50 per kVAr.The annual savings for installing 425 kVAr of capacitance would be about: $26.537 /yr . the estimated implementation cost for installing 425 kVAr of capacitance would be about: 425 kVAr x $50 /kVAr = $21.537 /yr Estimated Implementation Cost Based on previous experience.250 / $26.$0 /yr = $26.537 /yr) x 12 months = 10 months . Therefore. Estimated Simple Payback ($21.

which are rated in terms of kVAr. The quantity of each type of power can be calculated using trigonometric relations defined by the power triangle.9. Low power factor can be corrected by adding capacitors. “General Rate DS01 Service at Secondary Distribution . The useful power drawn by machines and supplied by the utility is measured in kW.500 ARC: 2. The utility rate for meter 1 and 3. The ratio of power consumed by equipment (kW) to power in the lines (kVA) is called the power factor.3212. the power factor charge is kVA x 0. The power associated with this reactive current is called reactive power.3 Simple Payback 4 months Analysis Inductive loads. Most utilities charge for low power factor. The total power in the lines is the sum of the useful and reactive power and is measured in kVA. The diagram below shows the relationship between the various types of power. and is measured in kVAr.750 $13. it is unusable. hence. The reactive power can be calculated using the following relationship: Reactive Power (kVAr) = kW x tan (cos-1 (PF)) (2) The line power (kVA) can be calculated from the reactive power (kVAr) and power factor from the following relationship: kVA = kVAr/sin (cos-1(PF)) (3) In the utility analysis section of this report.750 $6. generate a reactive current that is not in phase with the current supplied by the utility.AR x: Install Capacitors to Improve Power Factor Annual Savings Project Cost CO2 Resource Dollars Capital Other Total (tonne) Electrical Fees None $44.362 $6. such as motors. kVA ( line power) kW PF = kVA kVAr (reactive power) kW (actual power used by machines) The power factor can be calculated using the following relationships: PF = kW / kVA = cos (tan-1 (kVAr/kW)) (1) Reactive power is a measure of the unused power in the lines.

062 1.287 764 0.402 $39.694 $45.033076 .020094) kWh + Billed kW x $15.439 15.192 1.1454 /kW The monthly power factor charge for each meter with a power factor less than 0.1454 /kW According to the utility bills.118 Calculated Total Cost ($/period) $26.243 Current Reactive Demand (kVAr) 604 685 810 907 883 694 765 Power Factor (kW/KVA) 0.064 508.08 1.80 0.80 0. .959 24.9 for every month.998 14.395 19. The calculated electrical cost for meter 1 is about $290.394 1.Voltage”.$0.088 Actual Demand (kW) 803 976 1.549 1.073 1.202 1.166 $53. Estimated Savings The table below shows meter 1 actual demand (kW) current reactive demand (kVAr).089 for the last seven billing periods. current power factor and the total calculated electrical costs based upon the current rate structure for the previous seven billing periods.90.000 kW is: Billed kW/mo x 300 kWh/kW x ($0.096 678.236 596. Meter 1 Meter Reading Date 10/5/2007 11/5/2007 12/6/2007 1/9/2008 2/7/2008 3/7/2008 4/8/2008 Days 29 31 31 34 29 29 32 Metered Consumption (kWh/period) 240.$0. the current power factors for meter 1 & 3 are less than 0.944 418.81 0.278 16. The calculated electrical cost for meter 1 by adding 250 kVAr of reactive power would be about $276.158 $290.649.229 19.035 1. Recommendation We recommend considering adding an additional 250 kVAr to Meter 1 and an additional 200 kVAr of capacitance to Meter 3 to improve the average power factor for each meter. new power factor and the total calculated electrical costs based upon the current rate structure for the previous seven billing periods.495 Tot/Avg 215 3.9 and a billed demand less than 1.427 990 1.033076 .020094) kWh + Billed kW x $15.000 kW is: Billed kW/mo x 300 kWh/kW x ($0.725 482.488 16.79 Power Factor Penality (kW) 102 97 140 138 110 137 139 Billed Demand (kW) 905 1.840 $39.089 The table below shows meter 1 actual demand (kW) new reactive demand (kVAr).256 1.78 0.82 0.9 and a billed demand greater than 1.586 1.974 1.369 $34.063 for the last seven billing periods.317 853 979 Supplied Power (kVA) 1.005 1. the monthly power factor charge for each meter with a power factor less than 0. Daily Consumption (kWh/day) 8.123 $51.336 1.80 863.100 1.600 724.823 Avg. Savings would be achieved if the power factor were increased to 0.83 0.

Meter 3 Meter Reading Date 10/5/2007 11/5/2007 12/6/2007 1/9/2008 2/7/2008 3/7/2008 4/8/2008 Days 29 31 31 34 29 29 32 Metered Consumption (kWh/period) 73.00 0.52 420 $94.136 5.062 1.624 330 467 330 0.42 83.326 Avg.8 494.035 1.148 514 0.71 0.71 633.547 4.312 $52.871 128.278 16.229 19.063 The table below shows meter 3 actual demand (kW) current reactive demand (kVAr).265 124.286 $12.097 177.224 $14.90 0. Meter Reading Date 10/5/2007 11/5/2007 12/6/2007 1/9/2008 2/7/2008 3/7/2008 4/8/2008 Days 29 31 31 34 29 29 32 Metered Consumption (kWh/period) 73.944 418.90 0.1 327.145 5.90 0.326 Avg.082 Tot/Avg 215 3.116 $32.382 16.183 4.73 0.649.097 177.39 105.823 Avg.078 for the last seven billing periods.00 0.00 Billed Demand (kW) 803 976 1.93 0.205 183.573 16.959 24.604 Actual Demand (kW) 232 282 362 368 387 309 368 Supplied Power (kVA) 232.Meter 1 Meter Reading Date 10/5/2007 11/5/2007 12/6/2007 1/9/2008 2/7/2008 3/7/2008 4/8/2008 Days 29 31 31 34 29 29 32 Metered Consumption (kWh/period) 240.90 Power Factor Penality (kW) 0.265 124.90 Power Factor Penality (kW) 0.624 330 358 132 0.90 0.439 15.00 0.078 The table below shows meter 3 actual demand (kW) new reactive demand (kVAr).67 0.469 $37.2 430.00 1.157 $10.94 0.136 5.981 $14.169 12.308 4.395 19.927 147.23 106.90 0.226 for the last seven billing periods.91 0. Daily Consumption (kWh/day) 8.974 1.064 508.93 0.272 14.183 4.725 482.998 14.488 16.78 0.927 147.60 124.64 84.05 0.90 0.7 547 548 437 527 Current Reactive Demand (kVAr) 184 309 338 405 387 309 378 Power Factor (kW/KVA) 0. Daily Consumption (kWh/day) 2.57 Billed Demand (kW) 267 376 445 492 493 393 475 Calculated Total Cost ($/period) 7.226 . The calculated electrical cost for meter 3 is about $94.205 183.00 Billed Demand (kW) 232 282 362 379 387 309 368 Calculated Total Cost ($/period) $7.6 New Reactive Power Demand Factor (kVAr) (kW/KVA) 0 109 138 205 187 109 178 1.113 4.492 159.90 0.256 1.259 $10.600 724.385 6.3 417.088 Actual Demand (kW) 803 976 1062 1256 1317 853 979 New Supplied Power (kVA) 878 1084 1180 1395 1463 947 1087 New Reactive Power Demand Factor (kVAr) (kW/KVA) 354 435 560 657 633 444 515 0.385 6.919 12.863 $49.113 4.547 4. new power factor and the total calculated electrical costs based upon the current rate structure for the previous seven billing periods. current power factor and the total calculated electrical costs based upon the current rate structure for the previous seven billing periods.308 4.679 Tot/Avg 215 994.4 408.650 Tot/Avg 215 994.236 596.990 $42.05 331 $82.93 11.67 94.035 $276. The calculated electrical cost for meter 3 by adding 200 kVAr of reactive power would be about $82.00 0.8 386.67 0.00 0.00 0.71 0.604 Actual Demand (kW) 232 282 362 368 387 309 368 Supplied Power (kVA) 296.317 853 979 Calculated Total Cost ($/period) $24.00 0.492 159.9 421.0 301.00 11.096 678.231 $37.00 0.668 $12.00 0.00 0.871 128.084 14.145 5. Daily Consumption (kWh/day) 2.00 0.70 Power Factor Penality (kW) 34.87 0.

Estimated Simple Payback ($13. the estimated implementation cost for installing 400 kVAr of capacitance would be about: (450 kVAr x $30 /kVAr) = $13.$276.226) / 7 mo = $25.089 .500/ $41.078 .500 We estimate that about 50% of this is for materials and 50% for labor.362 /yr Estimated Implementation Cost Based on previous experience.$82.595/year) x 12 months = 4 months .063) / 7 mo + ($94.878 / 7 mo x 12 mo/yr = $44.878 / 7 mo $25. simple capacitors can be installed for about $30 per kVAr. Therefore.The annual savings for installing 250 kVAr of capacitance to meter 1 and 200 kVAr of capacitance to meter 3 would be about: ($290.

000 1 month Analysis and Recommendation Motors and other inductance devices require more power in the lines than they actually consume. the angle theta in the power triangle shown above was about: Cosθ = kW / kVA θ = Cos-1 (PF) θ = Cos-1 (74%) = 42. Thus. In March 2000. supplied and reactive power is shown in the figure below. you do not want to over correct the power factor to more than 100%. the average plant power factor is about 68%.AR I632: TAKE CORRECTIVE ACTIONS TO IMPROVE POWER FACTOR Annual Savings Project Simple Cost Payback Resource CO2 (lb) Dollars Electrical Demand 437 kVA $94. According to the analysis below. this would be about 400 kVAr of capacitance. Estimated Savings Determining How Much Capacitance to Add The highest power factor registered during the period for which we were supplied with electricity data was for March 2000.27 o The reactive power was about: Tanθ = kVAr / kW kVAr = kW x tanθ kVAr = 594 kW x tan (42. Based on your electric rate structure. However. The relationship between actual. we recommend adding only enough capacitance to raise your power factor to 97% for that month.27) = 540 kVAr . Using standard trigonometric relations. kVA (power supplied by utility) PF = kW kVA kVAr (measure of unused power) kW (power used by machines) According to the your electricity bills. the power factor during the rest of the year would never exceed 97%. when the plant power factor was 74% and the peak power was 594 kW. you can lower your demand charges by improving power factor. Power factor is ratio of power used (kW) to the power that must be supplied in the lines (kVA). If the power factor during this month were corrected to 97%. power factor peaked at 74%.812 $8.

150) = 93% The annual average kVA would be about: . Using standard trigonometric relations.150 o The annual average power factor would be about: PF = Cosθ = Cos (21.156 o The reactive power is about: Tanθ = kVAr / kW kVAr = kW x tanθ kVAr = 579 kW x tan (47.156) = 624 kVAr If 400 kVAr of capacitance were added. Calculating Savings According to your electricity bills. the angle theta in the power triangle shown above is about: Cosθ = kW / kVA θ = Cos-1 (PF) θ = Cos-1 (68%) = 47. the amount of capacitance required to boost your power factor from 74% to 97% during March 2000 would be about: 540 kVAr – 149 kVAr = 391 kVAr We recommend adding about 400 kVAr.07 o kVAr = kW x tanθ kVAr = 594 kW x tan (14.07) = 149 kVAr Thus.If the power factor were increased to 97%. the annual average power factor is 68% and the annual average demand is 579 kW. the reactive power would be about: Cosθ = kW / kVA θ = Cos-1 (PF) θ = Cos-1 (97%) = 14. the average kVAr would be about: 624 kVAr – 400 kVAr = 224 kVAr The angle theta would be about: θ = Tan-1 (kVAr/kW) = Tan-1 (224/579) = 21.

. the annual average power factor is 68% and the annual average kVA is 852 kVA.9 .kVA = kW / Cosθ = 579 / Cos(21.150 o) = 621 kVA The billing kVA would be about: 621 kVA x [1 + (0. supplied and reactive power is shown in the figure below. The relationship between actual. the total installed cost for simple capacitors is no more than $20 per kVAr. the savings from correcting the average power factor to 93% would be about: 1.93%)] = 602 kVA According to your electricity bills.812 /yr x 12 months/yr = 1 month AR E061501: TAKE CORRECTIVE ACTIONS TO IMPROVE POWER FACTOR Annual Savings Project Simple Cost Payback Resource CO2 (lb) Dollars Electric Demand 42 kVA $3.9 – PF)] = 852 kW x [1 + (0.039 kVA Thus.800 9 months Analysis and Recommendation Motors and other inductance devices require more power in the lines than they actually consume. the total implementation cost for installing 400 kVAr of capacitors would be about: 400 kVAr x $20 /kVAr = $8.000 / $94. If so.9 – 68%)] = 1. Power factor is ratio of power used (kW) to the power that must be supplied in the lines (kVA).000 Estimated Simple Payback $8.669 $2. without power factor correction the annual average billing kVA would be about: Actual kVA x [1 + (0.08 /kVA-month x 12 months/yr = $94. Thus.812 /yr Estimated Implementation Cost According to quotes from other utilities.039 kVA – 602 kVA = 437 kVA 437 kVA x $18.

4%. the angle theta in the power triangle shown above was about: Cosθ = kW / kVA θ = Cos-1 (PF) θ = Cos-1 (95%) = 18. you do not want to over correct the power factor to more than 100%. we recommend adding only enough capacitance to raise your power factor to 99% for that month. However. According to the analysis below. this would be about 140 kVAr of capacitance. the amount of capacitance required to boost your power factor from 95% to 99% during February 2000 would be about: 251 kVAr – 109 kVAr = 142 kVAr . the reactive power would be about: Cosθ = kW / kVA θ = Cos-1 (PF) θ = Cos-1 (99%) = 8. In February 2000.195 o The reactive power was about: Tanθ = kVAr / kW kVAr = kW x tanθ kVAr = 765 kW x tan (18. Estimated Savings During February 2000. Thus.195) = 251 kVAr If the power factor were increased to 99%. Using standard trigonometric relations. you can lower your demand charges by improving power factor. the average plant power factor is about 92. the plant power factor was 95% and the peak power was 765 kW.kVA (power supplied by utility) PF = kW kVA kVAr (measure of unused power) kW (power used by machines) According to the your electricity bills.11 o kVAr = kW x tanθ kVAr = 765 x tan (8. power factor peaked at 95%.11) = 109 kVAr Thus. Based on your electric rate structure.

800 Estimated Simple Payback $2.500 15 months .000 $7. the average reactive power would be about: kVAr2 = 310 kVAr – 140 kVAr = 170 kVAr The average power supplied would be about: θ 2 = Tan-1(kVAr / kW) = Tan-1(170 / 750) = 12.28 /kVA–mo x 12 mo/yr = $3.4%) = 22. the power factor savings would be about: 42 kVA x $7.669 /yr Estimated Implementation Cost According to quotes from other utilities. the average reactive power during the year is about: Cosθ = kW / kVA θ = Cos-1 (PF) θ = Cos-1 (92. According to the your electricity bills. If so. the average plant power factor is about 92. The average power supplied is about 811 kVA and the average power consumed is about 750 kW.771) = 769 kVA The average reduction in kVA would be about: 811 kVA – 769 kVA = 42 kVA Thus.482 o Tanθ = KVAr / kW kVAr = kW x tanθ kVAr = 750 x tan (22. the total implementation cost for installing 140 kVAr of capacitors would be about: 140 kVAr x $20 /kVAr = $2.771 o kVA = kW / Cosθ 2 = 750 kW / Cos(12.669 /yr x 12 months/yr = 9 months AR E062901: INSTALL 500 KVAR OF CAPACITANCE TO IMPROVE POWER FACTOR Annual Savings Project Simple Cost Payback Resource CO2 (lb) Dollars Power factor charge 500 kVAr $6. Using these numbers.482) = 310 kVAr If 140 kVAr of capacitance were added. the total installed cost for capacitors about $20 /kVAr.4%.800 / $3.We recommend adding about 140 kVAr.

Thus.175 1. reduce line losses and allow electrical equipment to run cooler. kVA (power supplied by utility) kW PF = kVA kW (power used by machines) kVAr (measure of unused power) Recommendation We recommend installing at least 500 kVAr of capacitance to raise the plant power factor and save on electricity charges.181 1.163 Tot/Avg/Max KVAr 522 662 932 984 1.064 1.322 1.188 1. Most plants strive to achieve a power factor of 95% or more to reduce demand costs.258 1.058 kVAr.058 886 743 774 763 805 701 767 9.231 1. it would be highly unlikely that you would ever over-correct your power factor by installing 500 kVAr of capacitance. If you did. Estimated Savings Monthly demand.598 PF 93% 89% 80% 77% 78% 80% 83% 84% 85% 82% 84% 84% 82% The monthly average reactive power varies from a low of 522 kVAr to a high of 1. the annual savings would be about: .154 1.243 1. reactive power and power factor from the last year of billing data is shown in the table below. KW 1.Analysis Power factor is the ratio of actual power consumed (kW) to the line power supplied (kVA). The utility recorded an annual average power factor of 83% for the electricity service to the plant.298 1.084 1.

Assuming $15 /kVAr.000 Estimated Implementation Cost The contract price for installation of simple capacitors varies from $10 to $20 per kVAr.500 Estimated Simple Payback $7. the implementation cost would be about: 500 kVAr x $15 /kVAr = $7.500 kVAr x $1 /kVAR-mo x 12 mo/yr = $6.500 / $6.000 /yr x 12 months/yr = 15 months .

200 $60.048 kVAr/yr Recommended 3. Thus. A 79% power factor corresponds to an average of 2. low power results in overheating in wires.048 kVAr/yr Annual Savings 24. but are potentially even greater than the utility savings. and always reduces the lifetime and increases maintenance costs for electrical equipment. In addition. lower maintenance costs.254 kVAr per month.000 8. Installing 2.3 years Analysis Many types of electrical equipment require that more power be supplied to the equipment than is actually consumed by the equipment. Additional savings from longer equipment lifetimes. The annual utility savings would be about $7. low power factor results in higher utility costs. your average power factor charge is about $676 per month or about $8.200. We think that this is especially critical in your plant where the general difficulty of obtaining spare parts can put machines out of production for extended periods. Most industrial facilities have a power factor of 90% or above.AR X: INSTALL CAPACITORS TO IMPROVE POWER FACTOR PF charge Implementation Cost Simple Payback Present 27. The ratio of power consumed by equipment to power supplied to equipment is called the power factor. circuit boards and motors.114 per year. for which the utility charges 30 cents per kVAr. kVA (power supplied by utility) kW PF = kVA kW (power used by machines) The utility recorded an annual average power factor of 79% for the electricity service to the main plant. and avoided production stoppages are difficult to quantify. This overheating may cause circuit breakers to shut off the load and interrupt production.000 kVAr. Thus. your past problem with circuit overheating was worsened by your plant’s low power factor. kVAr (measure of unused power) .000 kVAr of capacitors would raise the average monthly power factor to about 99% without ever switching from lagging to leading. Your utility charges you for both how much power your plant actually uses (measured in kW) and for the excess power that the utility was required to supply (a measure of which is kVAr). It is therefore in your interest to maintain a power factor as close to 100% as is economically feasible. $7. In addition.

000 KVAr x $30 /KVAr = $60. It will also provide modest savings on your utility bill. The power factor in the last 12 months varied between 88.000 kVAr represents the maximum capacitance you currently need. Based on utility savings alone. not in kW.000 with more complicated controls and features. you could raise the power factor into the acceptable range of 90% or greater. Some capacitor banks were already installed on bus bars high above the floor.570 $1.9%. however.8% and 97. It could be as high as $100. the payback would be shorter if production and equipment maintenance savings were included. Estimated Savings 2. Our analysis indicated that you could install two 100-kVAR capacitor banks to your circuits.000 for installation 4 months Analysis Your electric demand charge is assessed in terms of kVA.200 Estimated Implementation Cost 2.000 Simple Payback = = 8. the simple payback would be 8. Lesser amounts of capacitance would reduce your utility savings accordingly.30 /KVAR = $7.3 years $7. You also have five 100-kVAR capacitor banks in stock.000 kVAr to be approximately $60. lower voltage drop in the circuit. This will increase the lifetime and efficiency of your equipment and help minimize production shutdowns. You could then install corrective capacitance on those circuits or on the main utility feed. Recommendations We tried to strike a balance between raising power factor and not to cross to “lead” power factor.Recommendation We recommend that you contact your utility about a power quality survey to identify the circuits with the lowest power factors. $3.000 with simple controls.200 / yr AR X: INSTALL TWO 100-KVAR CAPACITOR BANKS Present Electric Demand (kW) Estimated Implementation Cost: Simple Payback: Recommended Annual Savings 476 kVA. This means that the electrical demand charge directly depends on the overall power factor in your plant.000 kVAr/month x 12 months/year x $0.000 Estimated Simple Payback $60. and less maintenance.3 years. We estimate the cost of 2. preferrably at locations where some low power factor equipment items such . A high power factor results in several benefits: lower demand costs. Our recommendation of 2. lower overheating in wiring. In this way.

This low power factor problem could be corrected by adding capacitor banks at the source of the problem. Without audio failure systems.819 in cost penalties. we have learned from the experience in other plants that an audio failure warning system allows for instant detection of capacitor malfunction and thus helps avoid excessive cost penalties if a capacitor bank fails. After adding two 100-kVAR capacitor banks The annual total billing demand will be lowered from 13. The power factor varied between 83. When large electric motors are operated below 50% of their rated capacity. . Other large motors include a 500 hp motor at the hydropulper. As a result. their power factor decreases signficantly. 400 hp and a 150 hp motors at wood refiner. or both.003 kW After AR 0 kW Annual Savings 2.819 $30.3% and 85.003 kW. In addition. are located. Estimated Cost Savings Present The billing demand varied between 829 kVA and 1. The thermo-mechanical refiner was equipped with a huge 700 hp motor. capacitors should be installed at the motor. and a 100 hp motor at primary screen. These are good candidates to check for under loading. the electric main.000 14 months Analysis and Recommendation Your monthly power factor during the past 12 months was consistently below the 90% level required by your utility company.570/year in annual demand cost savings Estimated Implementation Cost $1.as welders. a total of 2.382 kVA. If so.654 kVA for the year (August 94 to July 95). it could be many months before you discover a capacitor bank failure. rectifiers.003 kW in accumulated power factor related demand penalties were assessed resulting in $25.654 kVA to 13.088 kVA for a reduction of 476 kVA Savings 476 kVA x $7.50/kVA = $3.7%. $25. and HID lamps with low power factor ballasts.000 for installing two 100-kVAR capacitor banks Estimated Simple Payback 4 months AR X: INSTALL CAPACITORS TO RAISE POWER FACTOR Electric Demand (kW) Estimated Implementation Cost: Simple Payback: Present 2. totalling 13.

the net need of new capacitors will be reduced accordingly. The improvement of power factor from 83% to 91% would result in an 8. .000 for 500 .600 kVAR capacitors and controls Capacitors installed at the electric main might require a sophisticated controls costing an additional $10. and allow you to decrease the size of wiring. $1731 $150 1 month Analysis Recently 200 kVAr of capacitance failed. Estimated Savings and Implementation Cost Looking backward.8% reduction in electric current. we estimate that adding 500 kVAr would save you about $25. This type of alarm is almost impossible to ignore and assures that you will be alerted to a capacitor bank failure. Estimated Implementation Cost $30. It would also reduce heat generation and voltage drop.731. we can say that a malfunctioning alarm caused the company to be charged for 123 kW in demand penalties costing $1.8% reduction in voltage drop across the circuit. but it is suspected that they were either knocked out by lightning or power surges. Audible alarms can be purchased and installed for about $150. we recommend installing an audible alarm.731 in demand penalties.000. If existing capacitors and fuses can be repaired and put back into operation. A functioning audible alarm would have avoided this cost. You should consult local heavy equipment vendors to check out motor loading problems and to determine how to position the capacitors between the motors and the electric main.819 per year in utility penalties. The visual alarm which should signal when the capacitor bank is not operational also failed. Estimated Savings Based on last year's utility bills.500 kVArs of capacitors will be needed to raise the power factor to 90% level. Recommendation Although a properly functioning visual alarm may alleviate such problems in the future. and an 18% reduction in excess heat generation. This dual failure caused the power factor of the plant to drop below 90% and cost the company $1. an 8. Simple Payback 14 months AR X: INSTALL AUDIBLE CAPACITOR FAILURE ALARM Electric Demand Implementation Cost: Simple Payback: Present 123 kW Recommended 0 $150 Annual Savings 123 kW. Some capacitors have already been installed.

Simple Payback SP = $150 initial cost / $1.731 /yr savings x 12 months/yr = 1 month .