Vortex Brands Co (VTXB)

[john44]

Negative power is fed back to the generator. It cannot be sold; though, it does waste power in the resistance of electric lines between load and generator. The parallel capacitor corrects this problem. (e.g PAS).
Note that reduction of line losses applies to the lines from the generator to the point where the power factor correction capacitor is applied. In other words, there is still circulating current between the capacitor and the inductive load. This is not normally a problem because the power factor correction is applied close to the offending load, like an induction motor.(e.g. PAS)

The savings is in the power line loads going to the customer where PAS is applied.
The power line owners will have to share the savings with VTXB.
Also, large users of motors are charged for reactive loads by the electric company. PAS locally compensates the reactive loads.