Mike Kilroy
"Customers do not pay for reactive power (unless they have PF penalty charge) since it is imaginary; any reactive CURRENT goes out to the power source (or PFC caps) and then next cycle it all comes back to the source. net result is 0 power."
I still disagree. The reactive power has to come from somewhere. If it comes from a source on the customer side of the meter then you are absolutely correct. If not, and there is a PF burden charge, the customer will see the cost of these circulating currents.