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Real World Applications

Power Factor Correction Capacitor Water Company Reduces Electric Bill

Water Company Slashes Electric Bill, Eliminates Penalties

“Power costs are one of the largest expenses we have,” says Wade Amos, operations superintendent for Indiana American Water. Not only was Indiana American Water paying for the electricity it used, it was paying capacity penalties of $250 to $500 a month. Indiana American Water turned to ARCO Electric Products for help.

Cost: $ 5,369 • Return on Investment: 6 months

“The project paid for itself in about six months,” Amos says. “It also contributes to reduced use of resources. It’s not only about a cost savings, it’s the right thing to do.”

Mirrored Designs Reduce Load on Supply Transformers for Server Farm

Mirrored Designs Reduce Load on Supply Transformers for Server Farm

Providing computer storage space to the U.S. government and large companies around the country makes reliable electrical service “mission critical” to this Midwestern computer server farm. The company brought in ARCO Electric Products to determine how to reduce the load on its supply transformers.

Computer Server Farm Mirrored Capacitor Installations Cost: $74,000

Benefits: Reduced supply transformer load, Backup electrical system, and data monitoring

Grain Elevator Says ‘No’ to Power Factor Penalties

Grain Elevator Says ‘No’ to Power Factor Penalties

Month after month, Richards Elevator in Columbus, Ind., was getting hit with power factor penalties. Big ones.

“Utility power factor is based on 95 percent, and ours would range from 40 percent to 66 percent, so we were paying a huge penalty for the differential,” says Philip Newton, co-owner of the 1-million-bushel facility. “That’s what drove our decision to sit down with ARCO,” he says.

Power Factor Correction Capacitor Unit

• Cost: $12,885 • Return on Investment: Less than one year

Auto Parts Plant Now Saving $4,200 a Month on Utilities

Auto Parts Plant Now Saving $4,200 a Month on Utilities

PK-USA Inc.’s 317,000-square-foot metal stamping business in Shelbyville, Indiana was getting excess net kVARh charges. ARCO assessed the situation, and their solution was put into place: Power Factor Capacitors on two mains. The benefits:

  • Reduced current flow
  • $4,200 a month savings on electric bill
  • Cost: $ 80,000
  • ROI: 18 months