NETS Podcast: Power Factor and Peak Demand with Dan Bender

Dan Bender explains the importance of increasing power factor and reducing peak demand to lower your power costs.



4 min read

In this podcast with Dan Bender, learn how a comprehensive power study can help reduce your operating costs, improve power factor, and reduce harmonics.

Transcript Summary

Dominick DeLuca:
Welcome to In the Loop, a New England Temperature Solutions podcast! I’m Dominick DeLuca, and today, I’m excited to have Dan Bender, Director of Sales at Control Concepts, join us. With over 42 years in the industry, Dan has a wealth of knowledge about SCR power control and energy systems. Dan, welcome to the podcast.

Dan Bender:
Thanks, Dom. I’m happy to be here.

Dominick DeLuca:
Let’s start with a quick introduction. Tell us about your background and what brought you to Control Concepts.

Dan Bender:
Sure. I’ve been in the industry for 42 years, starting at Robocon. From there, I worked for Siemens, Eurotherm, and Advanced Energy before joining Control Concepts in 2009. Along the way, I’ve seen the industry evolve, particularly as electrification has become a bigger focus.

Power Factor and Peak Demand

Dominick DeLuca:
You’ve clearly been around for some of the biggest changes in the industry. Speaking of changes, today, we’re diving into two critical energy topics: power factor and peak demand. Let’s begin with power factor. For those unfamiliar, how would you explain it?

Dan Bender:
Power factor is the ratio of energy used (KW, or kilowatts) to energy available (KVA, or kilovolt-amperes). Ideally, you’d use all the energy available, which would give you a power factor of 1.0, or unity. However, in many cases, the energy used is less than the energy available. For example, if you have 100 KVA available but only use 80 KW, your power factor is 0.8.

Dominick DeLuca:
And when your power factor drops below a certain threshold, utilities impose penalties, right?

Dan Bender:
Exactly. Most utilities require a power factor of at least 0.9. If you fall below that, they’ll charge you extra for the inefficiency. It’s like reserving a table for eight people but only showing up with four—you still have to pay for the unused seats.

Dominick DeLuca:
I love that analogy! You also have a great visual analogy involving a glass of beer.

Dan Bender:
Yes, imagine a 16-ounce beer glass. The foam on top represents unused energy. You’re paying for a full glass, but if part of it is foam, you’re not getting your money’s worth. That’s what happens when your power factor is low—you’re paying for energy you’re not effectively using.

Fixing Power Factor Issues

Dominick DeLuca:
That makes sense. So, how can businesses measure their power factor and address inefficiencies?

Dan Bender:
You can measure power factor with specialized equipment, and it’s typically monitored at the Point of Common Coupling (PCC), where the utility connects to your facility. To improve power factor, you can use technologies like power factor correction capacitors or adjust how equipment operates, such as using soft-start controllers for certain loads.

Peak Demand

Dominick DeLuca:
Got it. Let’s shift to peak demand. How does that affect energy costs?

Dan Bender:
Peak demand refers to the highest level of energy usage during a specific period, typically a month. Utilities base part of your bill on this peak, and if you exceed your agreed-upon level, they’ll charge you at a higher rate for the entire billing period.

Dominick DeLuca:
So if you turn on all your equipment at once after a weekend shutdown, you could hit that peak and pay the price for weeks?

Dan Bender:
Exactly. To avoid this, businesses can stagger equipment startups or maintain a low-power mode over the weekend instead of shutting everything down completely.

Other Strategies for Energy Efficiency

Dominick DeLuca:
What other strategies can help businesses improve energy efficiency and reduce costs?

Dan Bender:
In addition to staggering startups, using soft-start SCR controllers can help manage load efficiently. For long-term solutions, a professional power quality study is invaluable. These studies analyze your system’s performance, including power factor, peak demand, and harmonics, and provide recommendations to optimize your energy use.

Dominick DeLuca:
Speaking of harmonics, that’s the topic for our next episode. But for today, what’s the key takeaway on power factor and peak demand?

Dan Bender:
The key takeaway is that poor power factor and high peak demand can cost your business significantly. Addressing these issues not only lowers utility bills but also ensures you’re utilizing energy effectively. And always work with a reputable organization for a thorough power quality assessment.

Dominick DeLuca:
Great advice, Dan. Thank you for sharing your insights today!

Dan Bender:
Thanks for having me, Dom.

Dominick DeLuca:
And thank you for listening to In the Loop. If you have questions or need assistance, we would be happy to help. Stay tuned for our next episode on harmonics, and as always, thanks for getting in the loop!