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Page 1 of 1 Jim Pierce From: Jim Pierce Sent: Thursday, June 26, 2003 11 :29 AM To: Randy Moravec Cc: Mike Murphy; Jerry Davis Subject: RE: TXU Energy's Power Factor Correction Program
Randy:! talked with Chris Rowley of TXU today (214-875-8164) about the above. TXU will be focusing on their large power users first, those over 1,000 Kw. They have over 4,000 users of
1,000 Kw or more. It will take 1-1/2 to 2 years to change out meters and begin billing those customers, maybe more. Our usage at Celestial is 646 Kw which puts us way down the list.
TXU will give First Choice advance notice of when they will be ready to change out our meters and begin charging us for power factor. That is when we should have a study done to see
what our power factor is. We can use TXU for that. They will give us a proposal, and cost, to do the study. If the cost is reasonable, we get the study done and see what their recommendations
are. If not, we can get Joe Katrola (our electrical consuHant) to do the study and offer recommendations. I would revisit this with First Choice in early 2005. Jim Pierce, P .E. Assistant
Public Works Director P.O. Box 9010 Addison, TX 75001-9010 972-450-2879 -----Original Message----From: Randy Moravec Sent: Monday, June 23, 2003 4:22 PM To: Jim Pierce Cc: Mike Murphy
Subject: Jim, Please find attached a PowerPoint file relating to power factors and their impact to the Town's electric bills. I am most concerned the affect these will have on our water
and wastewater pumps. It is requested you review this issue with the appropriate engineers and determine whether there is some corrective action that can be taken to reduce the load.
THANKS!!! Randy 6/26/2003 
POWER FACTOR CORRECTION Webinar Forum Presented to: TXU Energy Large Commercial and Industrial Customers Presenter: Chris Rowley, P.E. Phone: 214-allill• ;r?S -?3' 􀁾􀁯􀀫􀀠 email: chris.rowleY@txu.co
m Please Dia11-800-214-0745 passcode 720469 for the audio portion of this event. 
Power Factor is the ratio of Real Power to Apparent Power. Ideal power factor is 1.0 (or 100o/o), but typically between 70°/o and 90%. •!• Apparent Power (kVA) is the total power consumed.
•!• Real Power (kW) is the power that performs actual work. •!• Reactive power (kVar) is the power that provides the magnetic flux necessary for the operation of various loads such as
motors, chillers, and fluorescent lights. Webinar Forum 
It's like a tow truck pulling a train engine. Useful Work (kW) Apparent Work (kVA) ' >----Non-useful Work, but necessary (kVar) ; . _,_ ;:Gravel Road ' Iii . . . 􀀺􀀺􀁾􀀠.. 􀁾􀀭􀀮􀀠
:-.. :._. .. Webinar Forum 
Example Assume that a certain industrial plant contains various types of electrical loads and draws 4,000 kW of real power at a power factor of 80%. Power Factor = kW I kVA kVA = 􀁾􀁫􀁗􀀲􀀭􀀺􀀻􀀠kVar
2 kVar = 􀁾􀁫􀁖􀁁􀁩􀁾􀀠kW2 . kW = 􀁾􀁖􀁁􀀲􀀭 kVar2 kVA =Amps x volts Real Power = 4,000 kW Apparent Power = 5,000 kVA Power Factor = kW I kVA =80% Reactive Power = 3,000 kVAR kVA = 4,000
kW 1.8 = 5,000 kVA Webinar Forum 
•!• Electric Generators must generate both the active and reactive power required by its users. Since reactive power is nonuseful, it wastes resources and capacity to have to produce
it. •!• Transmission and Distribution Service Providers (TDSPs) must build their power lines to carry both the active and reactive current (amps.) Lower power factors reduce the capacity
of the power lines to carry active, useful current. This results in over-sizing wire, transformers, and other equipment. Webinar Forum 
Why is Power Factor Important? 􀁾􀁪􀁔􀁾􀁾􀀠 􀁾􀁾􀁾􀁾􀁾􀁾􀁾􀀢􀀢􀀢􀀢􀀢􀀧􀀢􀁾􀁾􀀠.. ==:::::::::::::::::::::::::::: •!• In the regulated electric environment, TXU Electric installed capacitor
banks on their power lines and in their substations to raise the power factor to close to 1 00%. • This eliminated wasted generation and improved the capacity on the power lines. •!•
In the deregulated electric environment, TXU Energy is responsible for its own generation and Oncor is only responsible for building, maintaining, and operating its transmission and
distribution system. •!• The new regulatory environment pushes power factor correction from the bundled utility to the customer. •!• Oncor will soon be charging a power factor adjustment.
Webinar Forum 
•!• Affects only Transmission and Distribution Service Provider (TDSP) charges -not the negotiated energy rates •!• Affects only commercial and industrial customers •!• New regulatory
pressures pushing TDSPs, such as Oncor, to influence customers to raise their power factor levels •!• Begins in Summer 2003 and will be implemented over the next 3 years •!• Largest
customers will be affected first •!• Oncor plans to replace the meters for all customer accounts of 1 ,000 kW or larger by the first quarter of 2004 •!• Possible increase of TDSP charges
by as much as 35% Webinar Forum 
If the Power Factor of Retail Customer's load is found to be less than 95% lagging as measured at Retail Customer's Meter, Company may require Retail Customer to arrange for the installation
of appropriate equipment on Retail Customer's side of the Meter necessary to maintain a Power Factor of not less than 95% lagging as measured at Retail Customer's Meter, or, at Retail
Customer's option, to reimburse Company for installing the necessary equipment on Company's Delivery System. Until the proper equipment has been installed to correct the Power Factor
problem, the Billing Demand associated with Retail Customer's use of Delivery Service, as calculated in the appropriate Rate Schedule in Section 6.1, RATE SCHEDULES, may be adjusted
according to the following formula: Adjusted Billing Demand= (Billing Demand x .95)/Power Factor'' Webinar Forum 
For Example: Assume that a certain customer site has a power factor of .85 (85%). In Oncor's territory, the power factor for this facility will trigger penalties as follows: *MaxkW Webinar
Forum 
How Do You Raise Your Power Factor? 5,000 kVA 4,000 kW Power Supply 3,000 kVAR Load Before Correction Power Supply 4,000 kW 􀀳􀀬􀀰􀀰􀀰􀁫􀁖􀁁􀁾􀀠---w Capacitor Load After Correction Webinar
Forum 
Typical Simple Paybacks: As a rule of thumb, the installed budgetary cost to correct the power factor is approximately $40-$140 per kVar for a secondary electric rate and $35-$75 per
kVar for a primary electric rate. Using these costs and the existing approved Oncor TDSP rates, the simple payback periods to correct the power factor to 95% are approximately: Existing
Power Factor Secondary Primary 60% 2.5 years 2.0 years 70% 3.0 years 2.5 years 80% 4.0 years 3.0 years 90% 5.0 years 4.0 years Webinar Forum 
No cookie cutter solution exists to correct the power factor at every location. Each customer site is distinct and should be treated as such. The wrong application can result in failed
equipment and other significant problems. Webinar Forum 
TXU Energy's Power Factor Correction Program can assist you in managing the process: 1. We monitor the power at your site to determine power factor levels, harmonics, and usage. 2. We
gather all other relevant data necessary to design a proper system. 3. We submit an RFP to 3 established PF Correction companies with which TXU has developed partnerships. 􀁎􀁯􀁾􀁥􀀭􀁥􀀠w-,1(
k r.---Jr 4. We review proposals and make recommendations to our _ 􀁾􀀠 customers. \ 􀁾􀁴􀀧􀀠􀁾􀀿􀀻􀀮􀀠 . 590 􀁣􀁾􀀰􀀠 _ 􀁾􀁾􀁾􀀮􀀺􀀮􀀮􀀬􀂷􀀠 􀁩􀀩􀀩􀁾􀁴􀁦􀀢􀀺􀀭􀁾􀀠 􀁦􀁯􀁵􀁬􀁬􀁓􀁴􀁬􀁜􀀱􀁜􀁩􀁾􀀠
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-···-·.· This session will be archived for 90 days. To review, please contact Eric Wortmann at the following email address: Eric.wortmann@txu.com Thank You For Your Business!!! Webinar
Forum