3/11
Current Power Factor
Install Correction Equipment
Power Factor Correction
Improved Electrical Supply
Save Money
SIGNIFICANCE
Having a poor power factor wastes energy - for
your business as well as the electric utility. Utilities
generally incorporate a penalty into their rates in
an effort to cover the additional costs necessary to
overcome this waste and provide enough electricity
to perform the customer’s required work.
In Ames, the penalty charge for poor power
factor is applied to those companies who do not
demonstrate efficient electricity use. You may find
this charge itemized on your electricity bill.
Poor power factor charges can be made
significantly smaller, or eliminated altogether, by
installing power factor correction equipment, which
can reduce an electrical load and minimize wasted
energy.
It is not always necessary to reach a power factor
of 1. In Ames a cost effective solution can be
achieved by increasing your power factor to 0.9.
A full site survey is required to determine what type
and size of correction equipment is required to
meet your current and future needs. An electrician
can perform this analysis.
You can do other things to aid in conserving energy
such as using day lighting rather than electric
lighting, installing efficient lighting where needed,
improving motor efficiency, and performing an
energy audit.
Disclaimer
City of Ames Electric Services does not
guarantee that installation and operation of
power factor correction equipment will result
in reduced demand or in cost savings. The
manner in which a customer uses and maintains
the equipment may affect potential cost savings.
City of Ames Electric Services makes no
warranties, expressed or implied, with respect
to any equipment purchased or installed,
including, but not limited to, any warranty
of merchantability or fitness for a particular
purpose. In no event shall City of Ames Electric
Services be held liable for any incidental or
consequential damages or injuries resulting from
defective equipment or installation. City of Ames
Electric Services reserves the right to cancel
or change programs at any time. City of Ames
Electric Services’ acceptance of an application
does not guarantee payment of rebate or
acceptance of financing.
More Smart Energy Practices
As part of the Smart Energy program,
Ames Electric Services offers educational
opportunities, incentives, and rebates to
help residential and commercial customers
conserve energy and save money. Smart
Energy programs include the Appliance
Rebate, Residential Energy Audit, Commercial
Audit, Air Conditioner Rebate, Residential
Lighting Rebate, Commercial Lighting Rebate,
Residential New Construction Rebate, Power
Watch, Prime Time Power, Green Choices,
Commercial Power Factor Correction Rebate
and Commercial Custom Rebate.
Visit www.cityofames.org or call
515-239-5177 for more information.
Smart Energy is one component of the City of
Ames’ EcoSmart program. EcoSmart is the
City’s comprehensive strategy to reduce energy
consumption and conserve natural resources.
Printed on Post Consumer-Waste Paper
Power Factor Correction
City of Ames Electric Services
Power Factor Correction Rebate
Rebate Information
TERMS AND CONDITIONS
Participants must be City of Ames Electric
Services’ customers.
POWER FACTOR
CORRECTION
WHAT IS POWER FACTOR
Power factor measures how well you use electricity.
To understand this, let’s examine some of the
different types of power:
Apparent power is the product of the volts and
amperes of a circuit. It is measured in kilovoltamperes (kVa). It includes both Working and
Reactive power.
Working power, a type of resistive load, is the
energy or work-producing part of Apparent power.
It is the power used in electric appliances, electric
heating and lighting. It is measured in kilowatts
(kW).
Reactive power, a type of inductive load, is used to
generate a magnetic field to power items such as
motors. It is the non-working portion of Apparent
power, and is measured in kilovolt-amperesreactive (kVARs).
Power factor, then, is the percentage ratio between
working power and apparent power. A large power
factor is to your advantage, whereas a low power
factor is the result of a lack of optimization of
electrical power types.
Power factor
correction is the
process of bringing
the ratio between
working power and
apparant power as
close as possible to 1.
Installation of
capacitors will
ensure the power
factor stays above .9
(90%) by switching
on capacitors as
equipment is used.
Power factor correction is a technique of
counteracting the undesirable effects of electric
loads that create a power factor that is less than
1. In Ames it is desirable to have power factor
correct at the customer’s location. City of Ames
Electric Services realizes this may be an expensive
undertaking. The Smart Energy Power Factor
Correction Rebate Program can help. Those
businesses installing power factor correction
equipment will be eligible for an incentive of one
half of the correction-equipment cost up to a cap
of $100 per KVar. It is recommended the business
correct their power factor to at least 90%. Electric
Services also recommends the business work with
a local electrician on the design and installation of
correction equipment.
APPLYING FOR A REBATE
To apply, fill out a claim form and return it with proof
of purchase to:
City of Ames Electric Services
Smart Energy
502 Carroll Ave., P.O. Box 811
Ames, IA 50010
Claim forms are available online at:
www.cityofames.org or call 515-239-5177.
Power Factor
Correction allows for
a lower ammount of
electricity needed from
the electric provider,
therefore reducing
generating cost.
A high power factor will
reduce transmission
losses and improve
voltage regulation,
and so providing a
more efficient use
of electricity.
Incentive will be equal to 50% of correction equipment
cost but will not exceed $100 per kVAR.
Equipment costs do not include tax, freight, or labor.
Special cases where the incentive exceeds that described
above will be evaluated on a case-by-case basis and must
be pre-approved by City of Ames Electric Services.
Rebates are for power factor correction equipment only.
Rebate amount will not exceed equipment cost per unit.
Rebate amount will not exceed Electric Services’ cost
for correction.
Equipment must be installed and operating prior to
submission of application. All rebate payments are
subject to inspection and verification.
An itemized and dated invoice from the contractor must
accompany the equipment application.
Claim forms must be completed in full, incomplete forms
will delay processing and may be returned. Rebates are
based on the rebate schedule in effect on the date of
dealer invoice.
Claims must be submitted within 30 days of equipment
installation unless otherwise authorized.
Rebate checks will be issued to account holder in
existing buildings unless otherwise established prior
to submission of application. Checks will be issued
to builder/general contractor in new buildings unless
otherwise established prior to submission of application.
City of Ames Electric Services reserves the right to verify
corrected power factor.
Rebates may be subject to income tax. Consult your tax
advisor for more information.
Rebates are subject to availability of funds.
This program is subject to change or cancellation without
notice.
Equipment installed on or after January 1, 2008 qualifies
customer for rebate.