I should have been more clear. Yes it is true having unity PF will save money BUT depending on the situation, the amount save will vary widely. If a customer is not billed for reactive power, then I squared R loss will be rather small. If the customer has to pay a power factory penalty (like around here) then it will save money. But were not talking about cutting the bill in half or anything like that.
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.