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.

To encourage businesses to reduce their use of reactive power, Con Ed will be introducing a new reactive power charge. As of the January 25, 2010 filing, large commercial customers will be charged $1.10 per kVar for any billing period in which their power factor, or efficiency, is less than 95 percent (continue reading …)