Power Factor Correction Application Guide | Elimination Of Penalty Dollars
Phone  :  586.979.9955
Fax  :  586.979.9484

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Application Guide for Power Factor Correction


A high power factor eliminates the penalty utility providers impose while operating with a low power factor. For many years, most utility providers demanded a minimum of 85% power factor as an average for each monthly billing. Now, many of these same utilities are demanding 95% power factor. Facilities that fall short of the minimum pay a monthly penalty.

Utility companies have different ways of presenting power factor penalties on monthly billing statements. The actual wording or formula in the utility rate contract may spell out the required power factor, or it may refer to kVA billing, or it may refer to kW demand billing with power factor adjustment multipliers. The utility provider representative should be consulted to explain the particular rate contract used in the monthly bill. This insures the proper steps will be taken to eliminate penalty fees by maintaining a proper power factor.

Table of Contents

MYRON ZUCKER INC. products are designed to:

  • Improve power factor
  • Eliminate utility penalties or surcharges
  • Increase available distribution capacity
  • Mitigate harmonic distortion
  • Protect sensitive equipment
  • Decrease downtime
  • Reduce line losses and associated cost
  • Comply with industry standards


Myron Zucker, Inc.
36825 Metro Court
Sterling Heights, MI 48312
Phone: 586.979.9955
Fax: 586.979.9484
Email: [email protected]