Aldrich Technical Intro

Aldrich Technical is a General Contractor in the Electrical Engineering trade. Our specialty is Power Factor Correction. We eliminate Utility Company imposed penalties and oversupply charges.

What your Utility Company is calling these penalties and oversupply charges is "an incentive program."

What these incentive program charges are adding to your regular billing is the equivalent of what you would pay as a monthly payment for a 12-month period to finance the upgrade of your electrical system to remove you from their incentive program list.

Of course the incentive program that your Utility Company has you on doesn't just last for 12 months, it goes on into perpetuity or until whenever you "wise-up" to the situation... whichever occurs first.

The following is a penalty description from P G and E.; all Utility Companies have such Internet postings as a provision of their customer "upgrade incentive notice..." read this P G and E's legal Interconnectivity Handbook excerpt once you've finished this section narrative.


The CAISO Tariff, effective on March 31, 1998, specifies that all loads connected directly to the ISO grid are to maintain a power factor between 0.97 lag and 0.99 lead, as measured at the point where the retail facilities interconnect with the ISO-controlled facilities; i.e., the high voltage side of the distribution and entity-owned transformer banks. The ISO is currently developing penalties, which, subject to any required regulatory approvals, will be applied to the Scheduling Coordinators for Load Entities’ non-compliance to this power factor requirement.” 

Load Entities with a transmission connection receive Traditional Bundled Service under electric tariffs that provide for a billing adjustment using a reference power factor of 0.85. Those entities with power factors less than 0.85 incur a penalty and those with power factors greater than 0.85 receive a credit. Receiving service under these electric tariffs does not negate the need to meet the provisions of the CAISO Tariff. However, PG&E would continue to apply the power factor provisions contained in the existing tariffs to all transmission-connected Load-only Entities. Thus, an entity whose power factor is within, or corrects its power factor to be within, the ISO-acceptable range would receive a billing credit to the extent it exceeds the 0.85 reference power factor. 

We primarily deal with operations with a ten thousand dollar-a-month utility billing or more (but make exceptions) and eliminate around twelve thousand to thirty thousand dollars-a-year in annual penalties and over-billing... the upgrade cost are commensurate with the money saved or in other words the cost to eliminate the incentive program your Utility Company has you on, in most and usually all cases, the monthly payments never exceed the additional charges that your Utility Company is imposing on you and never exceed 12 months of payments.

Trying to "make do" with your "bare bones" electrical system initially installed when your building was first built is the problem.

Just by reading and learning this initial 6-minute lesson on the subject, you will have exceeded virtually every "field electrician's" knowledge on the subject and realize why the electrician that built your building never integrated such adjustments to your building’s architecture.

For one thing, they didn’t know of your operation’s load demands at the time of erecting the building, and number two; their field of expertise doesn’t include engineering. This is also why you have never heard of such a thing and why you just continue to, “be in the dark” on the subject paying way more than you should be paying.

It isn't a complicated procedure to fix; it is just a matter of installing a few strategically placed capacitors... one of the most elementary known strategies known to electrical engineers for correcting and maximizing electrical power

Remember... the cost for our services are already "built into" your present monthly billing... you pay nothing extra... watch this following video and read on to the next narrative!

YouTube Video

Either "Tate circuits" or capacitors can be used to synchronize current to voltage timing.

Graphic and cursive explanation

Graphic explanation

Aldrich Technical Body

If you cannot distinguish the above bar graph color legend... red is voltage, white is Power factor percentage ( lower is worse), and gold is amperage. 

A simple synopsis of your problem;

If the voltage and current are out of sync (see the upper right waveform image), then the current has to be supplemented with additional Kilo Volt Amps and Kilo Volt Amp reactance power by the Utility company to make up for its loss in your systems failed synchronization (see below spreadsheet); this is where additional demand charges come into play, when you're upgraded you will provide your own KVAr and eliminate the need for additional KVA. 

A 60% power factor means that though you are paying for 100 amps, your power distributions setup is only capable of delivering the power of 60 amps of it... therefore if you need 100 amps, you are going to have to pay for approximately 168 amps to get it or correct the problem with the appropriate rating KVAr capacitors. 

Cursive explanation

(see the above Load amperes line to understand wattage charge effects below)

Load Amperes x Volts = Watts  

133.7 (90%) x 480=64,176    150.5 (80%) x 480=72,240    170 (70%) x 480=81,600    201 (60%) x 480=96,480

The difference between 90% (133.7 amps) Power Factor (64,176 watts) and 60% (201 amps) Power Factor (96,480 watts), is approximately 30% higher wattage bills.

Aldrich Technical Conclusion

The good and bad of your predicament.

The bad...
the Utility Companies have devised an upgrade incentive plan in the form of penalties (often hidden in billing) imposed upon you that cost you extra if you don't correct your energy use "power factor" to at least an 85% proficiency, this expense is on top of the expense of paying for the extra power that you shouldn't be paying for in the first place, together... on a $10,000.00-a-month billing, you'd be unnecessarily paying out a minimum of about $1,000.00-a-month (more likely about $2,000.00-a-month); over 90% of all businesses operate at less than 85% proficiency. 

The good...
fixing this problem only cost you redirecting your monthly penalty amounts from giving it to the Utility Company to giving it to a monthly power factor upgrade payment for approximately 12 months... it is not going to cost you anything more than you are presently paying out per month to escape this predicament

What we'll do and what it'll cost;
we, and here is a typical example... will drop a $10,000.0-a-month utility bill down to a $9,000 to$8,000-a-month bill using capacitors to synchronize the combined delivery timing of your current (variable) and voltage (constant) so that your delivery system is providing the "strongest" (100% unity) power possible with what you are drawing from the Utility Company. 

The upgrade additionally provides "reactive power" (KVAr) backup on a constant basis so that you get your own reactive power when needed instead of having to call upon the Utility Company when your device needs have a surge request for power. It'll cost about $1,000 to $2,000-a-month for 12 months in this example ($12,000 to $24,000 total) to pay off the upgrade project.

Here's your decision factor, unnecessarily pay $10,000.00-a-month into perpetuity, or, $10,000.00-a-month for only 12 months ($8,000 to $9,000 utility and $1,000 to $2,000 monthly upgrade payment), and then that's it, from then on, you will be cashing in on a new $12,000 to $24,000-a-year positive cash flow not otherwise foreseeable to your layman's eye.

How it will go if you decide to move ahead;
  1. an intel packet and/or endless "live" consultation sessions on the subject of Power factor correction (your knowledge base) to help you understand the "whys and wherefores."
  2. We bring a portable variable capacitor bank and voltmeter to your facility to demonstrate a power-usage drop in your energy distribution system as a "proof in the pudding" guarantee before you sign anything or even start the project.
  3. We'll evaluate parts assessment, invoicing, ordering & receiving.
  4. Then installation, testing, orientation, and warranty/guarantee documentation.
*If your reactive power is 50% of your utility bill (HVAC, refrigeration, etc.), and we drop that 50% usage by 20%, you will realize a 10% overall monthly billing reduction charge. If on the other hand, you have many three phase motors in your operations, such as with a fabrication or machining shop, the savings will be significantly higher.

Here's a link to a bevy of images to help you get the picture on  the subject; Power Factor Illustrated
The following link is a full bonafide course on the subject of Power Factor; Power Factor Course
Before and after billing example using Power factor correction; Newcastle Government Australia

If you end up confused about anything immediately call me, I promise not to try and keep you on the phone or in any way try to make a "quick sale" with any "fast talking," I am not that kinda guy, Aldrich Technical is not that kinda Company.

20-year capacitor warranty, 5 years on peripherals, & one-year labor.

Call Glen Aldrich's Cell; 510-566-8003

We have surpassed every nation, including China, in the category of energy waste. Our country wastes the most energy in the entire world. The U.S. has an energy efficiency of 42 percent, which means 58 percent of all the energy we produce is wasted!