Cost Implications Of Low Power Factor

In summary, the conversation discusses operating a 3 phase, 11kV network with automatic power factor correction equipment installed. It is mentioned that over the last four weeks, the PFC has been switched off due to an electrical incident. The manager wants to include the increased electricity cost on the insurance claim due to operating without PFC. The conversation also brings up the option of using a TIAA power meter to measure power factor. The utility's perspective is also discussed, mentioning that an uncorrected load can result in the utility supplying surplus current and potentially increasing distribution costs. It is suggested to have an idea of the uncorrected power factor and to monitor for any changes in distribution costs. The conversation concludes with the question of whether
  • #1
BIGEYE
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We operate a 3 phase, 11kV network with automatic power factor correction equipment installed. Over the last four weeks we have had the PFC switched off due to an electrical incident.
How can I calculate the cost of running without PFC for this period of time, our load is fairly constant at around 2.5MW. Our manager wants to include the increased electricity cost on the insurance claim due to operating without PFC.

TIA
 
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  • #2
A power meter that can measure power factor? Something from Fluke (345B), http://www.amprobe.com/cgi-bin/pdc/searchprod.cgi?category=195&type=elec&tid=1&action=search", or your favourite instrumentation supplier.
 
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  • #3
Background:
To see this from the Utility's point of view, remember what your uncorrected load is doing: forcing the Utility to supply you surplus current for the same power draw. This doesn't immediately cost them anything, unless it happens to force them to up the current rating of their distribution equipment in the locale of your facility.

Details:
You should have some idea of the uncorrected power factor from the rating on the correction equipment installed. The cost, if any, will depend on the particular utility. Typically total cost is broken down into Distribution Demand in kw (power rating of the distribution to your facility) and another part reflecting actual energy supplied. Dominion Power for instance has an http://www.dom.com/customer/pdf/va/vab8.pdf" Stay above that and there's no penalty. Drop below it and for your Distribution Demand cost, they charge a minimum of 85% of your maximum KVA demand. If your facility's max VA demand peaks up to, say, 3000 KVA, they may charge you for 2.55MW worth of distribution regardless of actual load. If your utility invokes such a trigger it will be no doubt be reflected in the next bill as a new floor for your 'Distribution Demand' as it is called with the supply portion remaining at the 2.5MW average. The cost difference between that bill and earlier ones, with the reason indicated on the utility bill, should be easy to demonstrate for your insurer.
 
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  • #4
I have managed to get a look at earlier bills and there is a charge for kVAr, it varies quite a bit, but I'm expecting a big jump due to PFC being turned off. I am thinking along the correct lines?
 
  • #5
Yes, you are. The purpose of the power factor correction is to reduce the kVAr.
 
  • #6
Would there be a way to install a kvar-hr meter?
 

1. What is power factor and how does it affect cost?

Power factor is a measure of how efficiently electrical power is being used. It is the ratio of real power (in kilowatts) to apparent power (in kilovolt-amperes). A low power factor means that the system is using more apparent power than necessary, resulting in higher electricity costs.

2. How does a low power factor impact my electricity bill?

A low power factor causes the utility company to supply more electricity than is needed to meet the actual power demand. This results in a higher demand charge on the electricity bill, as well as potential penalties for low power factor usage. In some cases, the utility company may also charge for power factor correction equipment.

3. Can I improve my power factor and save money?

Yes, you can improve your power factor by installing power factor correction equipment. This equipment helps to reduce the reactive power demand and brings the power factor closer to unity (1.0). By improving the power factor, you can reduce your electricity bill and avoid penalties for low power factor usage.

4. Are there any other benefits to improving power factor?

Aside from cost savings, improving power factor can also lead to better system efficiency and reduced strain on electrical equipment. This can result in longer equipment lifespan and reduced maintenance costs. Additionally, utilities often offer incentives for customers who improve their power factor, such as reduced demand charges or rebates.

5. How can I determine if I have a low power factor?

You can determine your power factor by looking at your electricity bill or by conducting a power quality analysis. A power factor below 0.95 is generally considered low and may warrant power factor correction measures. It is recommended to consult with an electrical engineer or power quality expert to accurately assess your power factor and determine the best course of action.

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