Small restaurant in Memphis on MLGW General Power schedule. They're getting hit with power factor penalties every month. $85-120 additional charges. Kitchen equipment includes old fryers and refrigeration.
MLGW small restaurant - power factor charges
Power factor issues are common with restaurant equipment. MLGW charges penalty when PF drops below 90%. Capacitor installation usually runs $3,000-5,000 but payback is under 2 years.
Had similar issue with JEA in Jacksonville. Restaurant installed power factor correction, eliminated $140/month penalty. Make sure electrician sizes capacitors correctly.
Client installed capacitors last month. Power factor improved from 82% to 94%. Penalty charges dropped to zero. Total cost was $4,200, saving $95/month going forward.
Power factor correction is a great recommendation for restaurants and small manufacturers. Just make sure the capacitors are properly maintained.
Power factor penalties on small commercial accounts often go unnoticed until someone does an audit. Always check PF on restaurant and manufacturing clients.