Hey Mike,
As with any case of low pf, the culprit is almost exclusively caused by inductive loading. In practice, there is virtually no such thing as a capacitive load. Therefore, power factor will almost never go leading below unity (unless several capacitive components are suddenly introduced into a system when pf is being corrected too closely to unity; which can also be an issue). Whenever you see a poor power factor condition on a large industrial system, it is entirely due to a lagging power factor resulting from the introduction of inductance on the line. In my profession, I actually work around open-loop dyno test cells quite often, and can relate to what you are seeing. My guess is this period of low pf during the test may very well be due to the energizing of additional motors, transformer fed loads, etc. Especially if these circuits are using inline reactors to boost the inductance on some of the motors (a common practiced in many older industrial motor drives). A 0.12 pf does seem extremely low, and probably means that either A) the facility isn't equipped with properly sized pf correction capacitor banks to combat the huge inductive loads, or B) They aren't using them at all. I would hope that there is some kind of pf correction upstream of the test cell to keep this sort of low reading from reaching the main facility metering equipment. Because if there's one thing the power company loves to write-up big, costly penalties for (and rightfully so from their perspective), its a utility customer that is throwing massive VARs back onto the grid.