After installing power factor correction capacitors at a plant sub-station, an electrician notices that the utility meter's current reading has decreased for the same active power consumption. The voltage remains constant. Why did the current decrease?

Question: After installing power factor correction capacitors at a plant sub-station, an electrician notices that the utility meter's current reading has decreased for the same active power consumption. The voltage remains constant. Why did the current decrease?

Answer options:

• The added capacitance reduced the system voltage.
• The power factor correction increased the reactive power demand. ✅ The power factor correction reduced the reactive current component, leading to less total current.
• The active power consumption of the plant increased.

Correct answer: The power factor correction reduced the reactive current component, leading to less total current.

Explanation: Power factor correction works by supplying reactive power locally, often using capacitors to counteract inductive loads. This reduces the amount of reactive current that needs to be drawn from the utility, thus lowering the total current (apparent current) for the same active power demand and constant voltage. This reduction in current leads to less I²R losses in distribution.