TexasCHLforum.com

Like any good scam, there is some truth in this article. But most of it is bunk (I can say that word, can't I? Although I thought a different one...). Power factor correction is an issue for large facilities that use a lot of motors. It is NOT an issue for a normal residence.

To put it simply, the electric company measures your current consumption, not your power usage. As long as current and voltage are in phase, power and current are directly related. However, if current gets out of phase (which can happen with an inductive load like a large motor), then the measured current consumption is proportionally larger than the actual power usage. Using a capacitor bank (or a LOT of fluorescent lights) to shift the current back into phase with the voltage (essentially offsetting the inductance of the motors) will result in lower electric bills. But this is only a problem if you have a bunch of very high horsepower electric motors.

Also, I do have a degree in electrical engineering and am a licensed professional engineer in Texas and a few other states. So you should blindly believe EVERYTHING I tell you.