Myron Zucker Inc.

1

• 2008 DTE/ESD Energy Conference and Exhibition
• Energy Efficiency Implementation Case Study
• Power Factor Correction Case Study
• Power Overview
• Power Factor Penalties
• Case Study
• May 6, 2008

2
What is Power Factor
Power Factor is a measure of how effectively
power is used
Inductive loads require two types of power to
operate
Active Power
Apparent Power
Reactive Power
Active Power Performs the work
Reactive Power Maintains the electro-magnetic
field
Apparent Power Vector sum of Active and
Reactive power
3
What is Power Factor
Vector summing power
Active Power
kW
90
Reactive Power
kVAr
Apparent Power
kVA
Power factor is the ratio of active power to
apparent power
Power factor is the ratio of kW to kVA
pf
cos ? pf
?
arctan
4
What is Power Factor
Perfect Power Factor
Good Power Factor
Poor Power Factor
The Difference
kW
kVAr 0
?
0
lt 32
gt 32
kVA
No Penalty
kVAr
kVA
Unity
kVA
kVAr
Penalty
1
cos 0 1
gt .85
cos ? gt .85
lt .85
cos ? lt .85
0
lt 32
gt 32
arctan
5
Power Factor Penalty
Example of DTE penalty rates (issued January 1994)
Power Factor Penalty
.850 and higher None
.800 to .849 1
.750 to .799 2
.700 to .749 3
lt.700 25

• Penalty is applied to all metered quantities
• Power Factor less than .700 is not permitted and
  corrective equipment must be installed.
• 25 penalty applied after two consecutives months
  below .700

6
Power Factor Penalty
The Mechanics of Power
kW
kVAr
The Utility Company
Your Facility
7
Power Factor Penalty
The Mechanics Without Capacitors
The Mechanics With Capacitors
Power Factor .80
Power Factor .89
400 kW
1 Penalty
447 kVA
500 kVA
100 kVAr
200 kVAr
Your Capacitor Bank Catches and stores the kVAr
before it gets back on to the utilities grid
300 kVAr
The Utility
Your Facility
8
Power Factor Penalty
Example of DTE Utility Bill
Charges for 03/22/2008 through 04/19/2008 Charges for 03/22/2008 through 04/19/2008 Charges for 03/22/2008 through 04/19/2008 Charges for 03/22/2008 through 04/19/2008 Charges for 03/22/2008 through 04/19/2008 Charges for 03/22/2008 through 04/19/2008                    

Power Supply Charges Power Supply Charges Power Supply Charges Power Supply Charges
Power Supply Demand Power Supply Demand Power Supply Demand 1,080 KW _at_ 10.93 (See 1 Above) 11,804.40
Power Supply Energy Power Supply Energy Power Supply Energy
Power Supply Energy Power Supply Energy Power Supply Energy 653,047 KWH _at_ .0236400 Per Total KWH 15,438.03
Off-Peak Discount Off-Peak Discount 480,247 KWH _at_ -.0030000 -1,440.74
Surcharges Surcharges Surcharges
Regulatory Asset Recovery Surcharge Regulatory Asset Recovery Surcharge Regulatory Asset Recovery Surcharge Regulatory Asset Recovery Surcharge 653,047 KWH _at_ .0008980 Per Total KWH 586.44
Power Supply Cost Recovery Factor Power Supply Cost Recovery Factor Power Supply Cost Recovery Factor Power Supply Cost Recovery Factor 653,047 KWH _at_ .0086900 Per Total KWH 5,674.98
 

Sub Total 32,063.10
Delivery Charges Delivery Charges Delivery Charges Delivery Charges
Service Charge Service Charge Service Charge 275.00
Distribution Distribution
Distribution Demand -PV Distribution Demand -PV Distribution Demand -PV 1,080 KW _at_ 4.55 (See A Above) 4,914.00
Distribution Energy -PV Distribution Energy -PV Distribution Energy -PV 653,047 KWH _at_ .0070300 Per Total KWH 4,590.92
Surcharges Surcharges Surcharges
Nuclear Decommissioning Nuclear Decommissioning Nuclear Decommissioning 653,047 KWH _at_ .0012340 Per Total KWH 805.86
U-14838 Rate Reduction Credit U-14838 Rate Reduction Credit U-14838 Rate Reduction Credit 653,047 KWH _at_ -.0020410 Per Total KWH -1,332.87
Securitization Bond Charge Securitization Bond Charge Securitization Bond Charge 653,047 KWH _at_ .0036600 Per Total KWH 2,390.15
Securitization Bond Tax Charge Securitization Bond Tax Charge Securitization Bond Tax Charge 653,047 KWH _at_ .0012100 Per Total KWH 790.19
Choice Implementation Surcharge Choice Implementation Surcharge Choice Implementation Surcharge 653,047 KWH _at_ .0005000 Per Total KWH 326.52
 

Sub Total 12,759.77
                               

Invoice Subtotal Invoice Subtotal Invoice Subtotal Invoice Subtotal 44,822.88
3 Power Factor Penalty Based On 0.746 Power Factor 3 Power Factor Penalty Based On 0.746 Power Factor 3 Power Factor Penalty Based On 0.746 Power Factor 3 Power Factor Penalty Based On 0.746 Power Factor 3 Power Factor Penalty Based On 0.746 Power Factor 3 Power Factor Penalty Based On 0.746 Power Factor 1,336.44
                       


9
Power Factor Penalty
Example of DTE Utility Bill
Detail Charges Detail Charges Detail Charges Detail Charges
                               

For Service at xxxxxx For Service at xxxxxx For Service at xxxxxx For Service at xxxxxx Outage Contact Number Outage Contact Number Outage Contact Number Outage Contact Number Outage Contact Number xxxxxx

Invoice xxxxxx Invoice xxxxxx Invoice xxxxxx Invoice xxxxxx Billing Period 03/22/2008 through 04/19/2008 Billing Period 03/22/2008 through 04/19/2008 Billing Period 03/22/2008 through 04/19/2008 Billing Period 03/22/2008 through 04/19/2008 Billing Period 03/22/2008 through 04/19/2008 Days Billed 29 Days Billed 29

Metering Information Metering Information Metering Information Metering Information
                               

MeterNumber MeterNumber MeterNumber StartDate StartRead StopDate StopRead ReadDifference       Units Multiplier Units Multiplier   UsageUsed Type
xxxxxxx xxxxxxx 03/22 1,932.0A 04/19 2,129.0A 197.0 5,600.000 5,600.000 1,103,200.0 P-KVARH
xxxxxxx xxxxxxx 03/22 2,297.3A 04/19 2,518.0A 220.7 5,600.000 5,600.000 1,235,920.0 P-KWH

Total KVARH Total KVARH Total KVARH 1,103,200.0
Total KWH Total KWH 1,235,920.0
kVARH 1,103,200
kWH 1,235,920
kWH 1,235,920
kVARH 1,103,200
kVAH 1,656,668
.746
10
Sizing Power Factor Capacitors
11
Sizing Power Factor Capacitors
Avg Kilowatthours Used Per Day This
Period 22,519 KWH
Billing Status Information Billing Status Information Billing Status Information Billing Status Information                        

1 On-peak Billing Demand On-peak Billing Demand On-peak Billing Demand On-peak Billing Demand 1,080 KW ESTABLISHED ESTABLISHED 03/22/2008 1130
3 65 High OP Bill Dmd June-Oct prec 11 mths 65 High OP Bill Dmd June-Oct prec 11 mths 65 High OP Bill Dmd June-Oct prec 11 mths 65 High OP Bill Dmd June-Oct prec 11 mths 65 High OP Bill Dmd June-Oct prec 11 mths 702 KW ESTABLISHED ESTABLISHED 09/21/2007 1130
6 Rate Minimum Demand (Site) Rate Minimum Demand (Site) Rate Minimum Demand (Site) Rate Minimum Demand (Site) 50 KW ESTABLISHED ESTABLISHED 01/22/1994 0000
8 Highest Single Billing Demand Highest Single Billing Demand Highest Single Billing Demand Highest Single Billing Demand 1,080 KW ESTABLISHED ESTABLISHED 03/22/2008 0030
A Current PV High Monthly Demand Current PV High Monthly Demand Current PV High Monthly Demand Current PV High Monthly Demand 1,080 KW ESTABLISHED ESTABLISHED 03/22/2008 0030
B 50 of the Contract Capacity for PV 50 of the Contract Capacity for PV 50 of the Contract Capacity for PV 50 of the Contract Capacity for PV 540 KW ESTABLISHED ESTABLISHED 05/19/2007 2230
C Primary Voltage Maximum Demand Primary Voltage Maximum Demand Primary Voltage Maximum Demand Primary Voltage Maximum Demand 1,080 KW ESTABLISHED ESTABLISHED 03/22/2008 0030
W Coincidental Max Onpk KW Dmd at Site Coincidental Max Onpk KW Dmd at Site Coincidental Max Onpk KW Dmd at Site Coincidental Max Onpk KW Dmd at Site Coincidental Max Onpk KW Dmd at Site 1,080 KW ESTABLISHED ESTABLISHED 03/22/2008 1130
Primary Voltage Maximum OnPeak Demand Reactive Demand Primary Voltage Maximum OnPeak Demand Reactive Demand Primary Voltage Maximum OnPeak Demand Reactive Demand Primary Voltage Maximum OnPeak Demand Reactive Demand Primary Voltage Maximum OnPeak Demand Reactive Demand Primary Voltage Maximum OnPeak Demand Reactive Demand 0 KVAR
Percent Change Percent Change Percent Change 56 PCT
Avg Kilowatthours Used Per Day A year Ago Avg Kilowatthours Used Per Day A year Ago Avg Kilowatthours Used Per Day A year Ago Avg Kilowatthours Used Per Day A year Ago Avg Kilowatthours Used Per Day A year Ago 144,406 KWH
Power Factor (ratio) for all voltage Power Factor (ratio) for all voltage Power Factor (ratio) for all voltage Power Factor (ratio) for all voltage 74 PCT
Total Number of days in the Billing Period Total Number of days in the Billing Period Total Number of days in the Billing Period Total Number of days in the Billing Period Total Number of days in the Billing Period 29 DAYS
Excess KVAR for PF less than .8 Excess KVAR for PF less than .8 Excess KVAR for PF less than .8 Excess KVAR for PF less than .8 0 KVAR
Contract Capacty for Location Contract Capacty for Location Contract Capacty for Location Contract Capacty for Location 1,080 KW ESTABLISHED ESTABLISHED 02/20/2007 0000
Avg Kilowatthours Used Per Day This Period Avg Kilowatthours Used Per Day This Period Avg Kilowatthours Used Per Day This Period Avg Kilowatthours Used Per Day This Period Avg Kilowatthours Used Per Day This Period 22,519 KWH
(KVAR) Coincidental Max Demand at Site (KVAR) Coincidental Max Demand at Site (KVAR) Coincidental Max Demand at Site (KVAR) Coincidental Max Demand at Site (KVAR) Coincidental Max Demand at Site 0 KVAR
Average kW 22,519 / 24 938
Desired Power Factor () Desired Power Factor () Desired Power Factor () Desired Power Factor () Desired Power Factor ()
80 85 90 95 100
Original Power Factor () 68 0.328 0.459 0.594 0.750 1.078
Original Power Factor () 69 0.299 0.429 0.565 0.720 1.049
Original Power Factor () 70 0.270 0.400 0.536 0.692 1.020
Original Power Factor () 71 0.242 0.372 0.508 0.663 0.992
Original Power Factor () 72 0.214 0.344 0.480 0.635 0.964
Original Power Factor () 73 0.186 0.316 0.452 0.608 0.936
Original Power Factor () 74 0.159 0.289 0.425 0.580 0.909
Original Power Factor () 75 0.132 0.262 0.398 0.553 0.882
Original Power Factor () 76 0.105 0.235 0.371 0.526 0.855
Original Power Factor () 77 0.079 0.209 0.344 0.500 0.829
Original Power Factor () 78 0.052 0.183 0.318 0.474 0.802
Original Power Factor () 79 0.026 0.156 0.292 0.447 0.776
Original Power Factor () 80 0.000 0.130 0.266 0.421 0.750
kW 938
?
kVAr 837
kVA 1,257
Avg Kilowatthours Used Per Day This Period
22,519 KWH
938 0.398 373 or 375 kVAR required to
improve power factor from .75 to .90
12
Sizing Power Factor Capacitors

• Information Required to Size and Locate
  Capacitors
• 12 months of electrical utility bills
• Electrical layout of facility
• Motor location and sizes
• Transformer sizes
• Variable Frequency / Speed Drives
• Harmonic study

13
Case StudyOaks Correctional FacilityManistee,
Michigan

• 4 housing units 4 large buildings which include
  food services, health care, recreation,
  maintenance, warehouse storage, administrative
  offices.
• HVAC, compressors, lighting, hydraulic motors
• Poor power factor
• 650 average power factor penalty/month

14
Case StudyOaks Correctional Facility

• Solution for Oaks Correctional Facility
• 320 kVAr was calculated for facility to reach the
  target power factor
• 30 kVAr installed at the switchgear in each of
  the 4 housing units
• 50 kVAr capacitor installed at the switchgear in
  each large building
• Total cost of capacitors 6000
• Penalty eliminated plus rebate of 200/month
  850 savings/month
• Payback of less than one year achieved, even
  considering installation costs.

15
Benefits of Improving Power Factor

• Elimination of Power Factor Penalties
• Where applicable
• Increase Capacity in Electrical System
• Reduction of I2R Losses
• When capacitors are located close to inductive
  load
• Up to 4 savings for that load
• Improves Voltage on System

16
Power Factor Capacitors

• Capacitor Tolerances
• United States IEEE 18-2002
• Capability
• Line to Neutral 110 Continuous
• Line to Line 120 Continuous
• Current 180 Continuous
• Var Output 135 Continuous
• Europe CE Standards call for 8 hour period
• Remember that these standards are
  Recommendations, not Code, and can therefore be
  ignored by manufacturers

17
Power Factor Capacitors

• Electric Power Research Institute (EPRI)
• You can only save energy that is wasted
• Infrastructure (system) losses generally 1-4
• Includes I2R losses (Line Losses)
• Beware of large energy saving claims where
  capacitor are used
• Claims of large savings on your losses is NOT
  equal to large savings on your entire energy
  bill. A claim of 15 savings on energy losses
  at a facility with 2 line losses would total at
  most a .3 savings on the entire energy bill.
  (e.g. 15 x 2 0.3)