Power factor is the ratio of the actual power used to the apparent (reactive) power that a piece of equipment draws from the alternating current (AC) line. The reactance of large capacitors or inductors can cause the apparent power drawn from the line to exceed the actual power used, resulting in low power factor (PF). The lower the PF, the more energy is lost along the AC power line.The result is higher electricity bills for the utility customer. That lost energy also lowers the
capacity of the utility distribution system.