Working with a textile mill in Georgia that's getting hammered with power factor penalties on Georgia Power's Schedule PL. Their PF averages about 0.82 but the penalties are $4,500-6,000 per month. Seems excessive compared to other utilities. Is Georgia Power's penalty structure particularly harsh, or am I missing something?
Georgia Power - Schedule PL power factor penalties way too aggressive?
James - Georgia Power's PF penalties are definitely on the aggressive side. They charge for anything below 0.90, and the penalty escalates quickly. At 0.82, you're looking at about 8% additional charges on your demand. Have they considered installing capacitor banks? Payback is usually under 2 years.
Sylvia, that's what I'm thinking too. The customer has lots of motor loads and no power factor correction. I'm recommending they invest in automatic capacitor switching to get above 0.95. The monthly savings should easily justify the capital cost.