PG&E Power Factor Penalty Dispute - Need Advice

Started by Marc H. — 6 years ago — 13 views
Hey everyone, dealing with a tricky situation here in Bakersfield. Client got hit with a $12,400 power factor penalty from PG&E under Schedule E-19 for last quarter. Their meter is showing 0.72 lagging power factor but their new capacitor bank should have corrected this to at least 0.85. PG&E is claiming the capacitor bank isn't sized correctly but the electrical contractor insists it should handle the load. Has anyone seen metering errors cause false power factor readings? The facility is a large manufacturing plant with mostly induction motor loads. Really need some guidance on challenging this penalty.
Marc, I've seen this exact scenario with Duquesne Light customers here in Pittsburgh. Sometimes the capacitor switching isn't synchronized properly with the load cycles. Check if they have automatic power factor controllers or if it's manual switching. Also verify the capacitor bank hasn't degraded - those things can lose capacity over time. I'd request interval meter data from PG&E to see the hourly power factor readings. That will show you if it's consistently low or just spiking during certain periods.
Down here in Corpus Christi with AEP Texas, we see power factor issues all the time with industrial customers. One thing to check - are they switching the capacitors off during light load periods? Over-correction can actually hurt your power factor too. Also make sure the capacitor bank matches the voltage level correctly. I had a client where the contractor installed 480V caps on a 460V system and it caused all sorts of metering irregularities.
Great points everyone. Walt, they do have automatic controllers but I suspect they might not be working properly. Vivian, interesting point about over-correction - hadn't considered that. The voltage levels should be correct but I'll double-check. Does anyone know if PG&E has any specific requirements for power factor metering accuracy? I'm wondering if we can challenge the meter calibration itself.
Marc, here in San Jose I've dealt with PG&E on power factor disputes before. They're usually pretty reasonable if you have good data to back up your case. Request a meter test - they have to provide one if you ask. Also get copies of their tariff language on power factor measurement methodology. Sometimes they average differently than you'd expect. The key is getting that interval data to see exactly when the low power factor readings occurred.
I had a similar case with Eversource here in Hartford. Turned out the customer's harmonic distortion was throwing off the power factor calculations. If you have variable frequency drives or other non-linear loads, the traditional power factor correction might not be adequate. You might need active harmonic filtering instead of just capacitors. Check the total harmonic distortion levels - anything over 5% can cause metering issues.
Vince, that's a great point about harmonics. This facility does have several VFDs on their main process equipment. I'll have them do a harmonic analysis. Pete, thanks for the tip about requesting a meter test from PG&E - didn't know they had to provide that. I'll start gathering all the interval data and documentation to build a solid case.
Keep us posted on how this turns out, Marc. These power factor penalty disputes can drag on for months but it's worth fighting if you have good evidence. One last tip - if the capacitor bank installation was recent, check if there were any utility notification requirements that weren't met. PG&E sometimes gets touchy about that stuff and it can affect their willingness to negotiate.