Importance of Power Factor

Author: E.E. Kimberly

The number of volt-amperes necessary to supply power to a consumer is proportional to the power supplied and is inversely proportional to the power factor at which it is supplied. Therefore, at power factors other than 1.0, the number of volt-amperes necessary to supply a given active power is greater than the active power itself. Inasmuch as the capital investment, the fixed charges of which the demand charge is intended to defray, is a function of volt-amperes, a demand charge based on watts alone is insufficient to allocate properly the fixed charges.