Houston Power Services Co.

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What Power Factor Is

Power factor is the term used to describe how efficiently a facility utilizes all of the electrical power it consumes. With power factor correction, your overall energy savings range from 5% to 30% with guaranteed savings for 3 years. Plus, you'll see a return on your investment in only 12 to 24 months.

We can determine if you qualify for our power factor correction services by looking at just one electric utility bill. For those who meet the qualifications, we would need 12 months of their billing data to build spreadsheets and put together a complete proposal with turnkey solutions and recommendations on how power factor correction will benefit them. This preliminary work is completed with absolutely no upfront cost. Contact us to learn whether or not you qualify.

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Key Terms to Know:
KW — Working power (also called actual power or active power) used for inductive loads, such as compressor motors, computer power supplies, and lighting ballasts.

KVAR — Reactive power creates the magnetic field for inductive loads, which requires magnetic current to operate.

KVA — Apparent power is the combination of KW (working power) and KVAR (magnetizing current).

Main Benefits of Power Factor Correction Systems

The primary reason to improve your power factor is to lower utility fees by reducing peak KW billing demand and eliminating the power factor penalty. Inductive loads, which require reactive power, cause low power factor. This increase in KVAR generates an increase in KVA, which is what the utility company is supplying. As a result, your facility's low power factor causes them to increase its generation and transmission capacity in order to handle the extra demand.

Utility companies usually charge customers an additional fee when their power factor is less than 0.95. In fact, some are not obligated to deliver electricity to their customer at any time their power factor falls below 0.85. You can avoid this additional fee simply by increasing your power factor.