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Power Factor Problems It can be seen that an increase in reactive power causes a
corresponding decrease in power factor. This means the power
distribution system is operating less efficiently because not all
current is performing work. For example, a 50 kW load with a
power factor of 1 (reactive power = 0) could be supplied by a
transformer rated for 50 kVA. However, if power factor is 0.7
(70%) the transformer must also supply additional power for the
reactive load. In this example a larger transformer capable of
supplying 71.43 kVA (50 ÷ 70%) would be required. In addition,
the size of the conductors would have to be increased, adding
significant equipment cost.
The Cost of Power Utility companies sell electrical power based on the amount of
true power measured in watts (W). However, we have learned
that in AC circuits not all power used is true power. The utility
company must also supply apparent power measured in volt-
amps (VA). Typically utilities charge additional fees for increased
apparent power due to poor power factor.
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