Power Factor - Found this little gem... could't resist fellas..
To understand power factor, we will first start with the definition of some basic terms:
KW is Working Power (also called Actual Power or Active Power or Real Power). It is the power that actually powers the equipment and performs useful work.
KVAR is Reactive Power.
It is the power that magnetic equipment (transformer, motor and relay) needs to produce the magnetizing flux.
KVA is Apparent Power.
It is the "vectorial summation" of KVAR and KW.
Let's look at a simple analogy in order to better understand these terms....
Let's say you are at the ballpark and it is a really hot day. You order up a mug of your favorite brewsky. The thirst-quenching portion of your beer is represented by KW (Figure 1).
Unfortunately, life isn't perfect. Along with your ale comes a little bit of foam. (And let's face it...that foam just doesn't quench your thirst.) This foam is represented by KVAR.
The total contents of your mug, KVA, is this summation of KW (the beer) and KVAR (the foam).
The Beer Analogy

Figure 1
So, now that we understand some basic terms, we are ready to learn about power factor:
Power Factor (P.F.) is the ratio of Working Power to Apparent Power.
P.F. = KW / KVA
Looking at our beer mug analogy above, power factor would be the ratio of beer (KW) to beer plus foam or (KVA).
P.F. =
KW
KW + KVAR
. =
Beer Beer + Foam
Thus, for a given KVA:
• The more foam you have (the higher the percentage of KVAR), the lower your ratio of KW (beer) to KVA (beer plus foam). Thus, the lower your power factor.
• The less foam you have (the lower the percentage of. KVAR), the higher your ratio of KW (beer) to KVA (beer plus foam). In fact, as your foam (or KVAR) approaches zero, your power factor approaches 1.0.
Our beer mug analogy is a bit simplistic. In reality, when we calculate KVA, we must determine the "vectorial summation" of KVAR and KW. Therefore, we must go one step further and look at the angle between these vectors.
Thats why we like 90%-95% power factor....