A factory operates at 0.80 p. f. lagging and has a monthly demand of 750 Kva. The monthly power rate is Pesos 8.50 per Kva. To improve the power factor 250 Kva capacitors are installed in which there is negligible power loss. The installed cost of equipment is Pesos 20,000 and fixed charges are estimated at 10% per year. Calculate the annual savings effected by the use of capacitors.

Power System Analysis and Design (MindTap Course List)
6th Edition
ISBN:9781305632134
Author:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Publisher:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Chapter2: Fundamentals
Section: Chapter Questions
Problem 2.16P: A single-phase, 120V(rms),60Hz source supplies power to a series R-L circuit consisting of R=10 and...
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A factory operates at 0.80 p. f. lagging and has a monthly demand of 750 Kva. The monthly power rate is Pesos 8.50 per Kva. To improve the power factor 250 Kva capacitors are installed in which there is negligible power loss. The installed cost of equipment is Pesos 20,000 and fixed charges are estimated at 10% per year. Calculate the annual savings effected by the use of capacitors.
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