Our local ultility company for years had a surcharge if power factor was below .9. ( non residential customers ) At my first plant 50 years ago we would start up a 125 HP Synchronous motor with out a load and think they called it over excitement to produce above a1 power factor while the ultility guy was on his way to our switchgear room/ meter room. Amazing how the heck cheating lack of quality control communist china gets away with making millons of LED lamps with very low power factor. A word of caution to you young sparkies: Do not install a VFD on any motors that have their own power factor capacitors between starter & motor without first disconnecting the capacitors. We had a contractor install two 40 HP VFD'S and could not get them to work. I looked at it and after disconnecting the PF Capacitors drives ran great.I'm not sure if the Utility charges, let's say an industrial customer, for kW's only or for KVA?
What I'm getting at... If an industrial customer has a very poor power factor and they correct it, will it lower their bill?
If it makes no difference to their elec. bill, then what's the reason facilities spend all that money for PF correction capacitors?
Thanks