Power Factor Tariff

04/19/19

“Why do some facilities seem to obtain less power than they receive and how are they penalized in a tariff?”

Every facility connected to the grid can receive energy. But the amount that it receives versus what was apparently sent is known as the Power Factor Tariff. The lower the power factor tariff, the more generators and transformers, and other power infrastructure is needed to keep the system running. Since this increases the amount of upkeep needed, utilities implement a Power Factor Tariff to penalize users who draw too much from the grid.