Power factor is a measure of how effectively your equipment converts electric current from BC Hydro's system to useful power output, such as heat, light or mechanical motion. Low power factor costs you money.
There are two kinds of power:
- Usable power called kilowatts (kW)
- Reactive power called kilovar (kVar)
The ratio of your usable power consumption to your reactive power consumption determines your power factor. Some electrical equipment, such as motors and transformers, require both types of power. Power factor gets smaller as reactive power increases in comparison to usable power.
The train analogy diagram helps explain how it works.
When your power factor drops below 90%, a power factor surcharge is applied to cover the cost of supplying additional reactive power. The surcharge chart shows how your charges are calculated.
Low power factor is usually caused by devices, such as motors and transformers, which use a magnetic field to function. Some of the incoming current used to create the magnetic field leads to reactive power consumption, measured in kilovar-hours (kVarh). The ratio of your kWh consumption to your kVarh consumption determines your power factor each month.