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If a business near my home has a low power factor of say 0.80 will my utility company also penalize my monthly charges because of the low power factor? Or stated another way, how does a utility company know who on the common distribution line is causing the low power factor?

Please provide answer with supporting calculations. I think only customers with poor power factor have to pay because the each of the loads on a distribution line are in parallel and the data collected at each meter is unique to each load. Correct?

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    \$\begingroup\$ "Please provide answer with supporting calculations." Homework alert! What calculations have you tried? \$\endgroup\$
    – HikeOnPast
    Apr 6 '13 at 18:27
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Power is volts x amps x power-factor.

This means if you take 50A for 1 hour from 230V supply and your power factor is unity then you're meter will register 50 x 230 x 1 watt-hours or 11.5kWh

If your power-factor were 0.5 and you were taking 100A, your power meter would read the same wattage or watt-hourage.

Your electricity meter measures power consumed by your circuits and just because someone up the street has a different power factor it won't affect how the electricity company charges you for your power consumed.

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