Staco Energy Can Help you Make Sense of Your Electric Bill and Reduce or Eliminate Your Power Factor Penalty

Your electric utility or energy company may be charging (penalizing) you for power factor.  We suggest that you contact your utility sales representative and ask for a detailed AND understandable explanation of your electric bill.

Staco can help you with making sense of your bill as well.  Every electric company has a "unique" tariff structure; however a power factor adjustment/penalty line item, kVA or demand charge can be common.

What is power factor?  Simply put, certain equipment in a business operation may use electricity inefficiently.  Motors for example need both useful and reactive power to operate.  The power company will certainly provide (useful) electricity for the motors, however the excess (reactive) electricity also needed will cost your business more dollars.
 
What is the solution?  The installation of power factor correction capacitors.  These capacitors essentially provide the motors the reactive power necessary, eliminating the added cost from your electric utility company.  Power factor capacitors may be installed adjacent to motors and provide a "fixed" amount of capacitance for each motor.  Or, capacitors may be installed for multiple motors, at a feeder location, or at the building's electrical incoming area.  These type systems are larger, provided as "switched capacitors" (on demand) and may also be applied to improve power factor for the entire facility.

Your electric utility bills can see an immediate reduction, once power factor correction equipment is used, along with greater efficiencies of the power system network.  Equipment can be purchased or leased and the payback typically has a quick return.

To learn more, visit the power factor and harmonic correction areas of our website.