Reducing Electric Utility Bills with Power Factor Correction The power factor of an electric load can be defined as the ratio of real power to apparent power. Real power is, as implied by its name, the actual power the load is consuming. It is represented by the letter P and measured in kilowatts (kW). Reactive power is a type of power drawn by inductive or capacitive loads - it flows back and forth between the load and the voltage supply, without being consumed. It is represented by the letter Q and its measurement unit is kilovolt-ampere reactive (kVAR). Real and reactive power are out of phase by 90°, and their vector sum is apparent power. It is represented by the letter S and its measurement unit is kilovolt-ampere (kVA). Why is this important for electric utility bills? The main contributor to a low power factor is normally motor loads, which may include: Heating and cooling equipment Pumps and fans Industrial machinery In residential buildings, these types of loads are mini