If the average power factor, as measured at the PCC, is less than 0.9 (leading or lagging), the method of power factor correction necessitated by the installation of the generator will be negotiated with the utility as a commercial item. If the average power factor of the generator is proven to be above the minimum of 0.9 (leading or lagging) by the customer and accepted by the utility, that power factor value shall be used for any further utility design calculations and requirements.
Induction power generators may be provided VAR capacity from the utility system at the generator-owner’s expense. The installation of VAR correction equipment by the generator- owner on the generator-owner’s side of the PCC must be reviewed and approved by the utility prior to installation.