importance of power factor
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The significance of power factor lies in the fact that utility companies supply customers with volt-amperes, but bill them for watts. Power factors below 1.0 require a utility to generate more than the minimum volt-amperes necessary to supply the real power (watts). This increases generation and transmission costs.
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Importance of Power Factor A power factor of one or "unity power factor" is the goal of any electric utility company since if the power factor is less than one, they have to supply more current to the user for a given amount of power use. In so doing, they incur more line losses.
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