Power Factor Considerations
In electrical engineering, the power factor of an AC electrical power system is defined as being, the ratio of the real power flowing to the load to the apparent power in the circuit, and is a dimensionless number in the closed interval of -1 to 1. Apparent power is the product of the current and voltage of the circuit. Due to energy stored in the load and returned to the source, or due to a non-linear load that distorts the wave shape of the current drawn from the source, the apparent power will be greater than the real power. A negative power factor occurs when the device (which is normally the load) generates power, which then flows back towards the source, which is normally considered the generator
In an electric power system, a load with a low power factor draws more current than a load with a high power factor for the same amount of useful power transferred. The higher currents increase the energy lost in the distribution system, and require larger wires and other equipment. Because of the costs of larger equipment and wasted energy, electrical utilities will usually charge a higher cost to industrial or commercial customers where there is a low power factor.