Replies to post #19450 on Vortex Brands Co (VTXB)

[trader59]

This is a capacitor bank. They supply VAR's to inductive loads.
VAR's don't cost money to make, and don't cost money to consume. They magnetize the rotors of inductive motors. Watts move the rotors to drive loads.
Everybody's power bill shows they are charged for Kilo-watt-hours. A kilo-watt-hour is 1 kilo-watt (1000 watts) consumed for 1 hour. You aren't charged for kilo-var-hours, nor kilo-volt-amp-hours.
This company admitted (finally) in their S-1 this device has no impact on the meter kwh reading. That's truth. If this device doesn't save kwh, nobody saves money. So, if a company strolls up and offers to hook this device to a customer, and they tell them "it won't save you any money," they won't want it.
If the power factor of any particular transmission line or substation is resulting in an unacceptable voltage drop, the utilities will purchase a substation sized passive capacitor bank from ABB, Eaton, or some other supplier. They've done that for decades, just about as long as transmission and distribution of electricity has been around.
Utilities won't install this device. Know why? It has a computer hooked up to it, and cyber security regulations would require them to vet each and every one, and they're not going to do that when they don't even need it hooked up. It could go on the customer's side of the meter (they own it, after all), but see above for the likelihood of a customer agreeing to hook something up to their distribution system that doesn't save them money.

In short, is it possible to hook up a capacitor bank to improve a power factor/reduce kvars? Sure. Will it save money? No.

So, once again: Here's the youtube of some knowledgeable guys explaining that capacitor banks don't save money. It is a single phase mock up (the PAS is 3-phase, concept is the same) and has a human turn on the capacitor bank, where the PAS has a computer turn it on.