Reactive Power and Power Factor

"Con Edison is committed to New York State’s plan to reduce electricity use by 15 percent by 2015, and to significantly reduce carbon emissions in the coming decades. Con Edison, the Public Service Commission (PSC), and other electric utilities in the state have been evaluating ways to reduce energy loss on New York’s electric grid. These losses are damaging to the environment and cost hundreds of millions of dollars a year."

"One of the most significant ways electricity is lost occurs when reactive power travels along power lines. Reactive power is required for electric motors, fluorescent ballasts and other equipment to start up. The more reactive-power that customers use, the more energy the electric system loses, with a corresponding increase in the amount of greenhouse gases that are released into the atmosphere."

"To encourage businesses to reduce their use of reactive power, we will be introducing a new reactive power charge. Large commercial customers will be charged when their power factor, or efficiency, is less than 95 percent."

"We are prepared to help our commercial and industrial customers understand what they can do to reduce the impact on energy bills that may result from the new reactive-power charge as well as mandatory hourly pricing...." From website, Con Edison

Reactive Power and Power Factor

Reactive Power Charges are already in place.