I am new at this energy management stuff: My question is, we have a new Central chiller plant where I work that feeds 5 buildings for there A/C. The Power factor at this building is 99% when the chillers are running (outside temp above 50 degrees) but when the chillers are not running the power factor is 10% or below. When the PF is at 10% the KW is 6.75 so the KVA = 60+. The utility charges us for KVA demand charge which is almost $10 per KVA. Would it be smart to put capacitors in at this location? or Is the KVA Demand charge only at Peak KW usage? It is hard to see what this individual building is being billed by the Utility because it is not the only building on this circuit.