THE ADVANTAGES OF MAINTAINING A HIGH POWER FACTOR

REDUCTION OF I²R LOSSES
A potential savings in billed KW-Hrs can be realized depending upon where the capacitors are located in your electrical system. When capacitors are energized they reduce the total power usage (KVA) from their location in the system up to the utility source. In other words, capacitors reduce the current in amperes that had been flowing from the utility to the capacitor location. This ampere reduction might be as high as 20%. Since watt loss generated by current passing through a conductor is expressed by the formula ... watt loss = (Ampere) 2 x Conductor Resistance (W=I²R) ... it is obvious that locating the capacitors at the extremities of the feeders and branch circuits (where the loads are) can result in a sizeable reduction in total KW-Hrs usage every month.

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