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RE: Your question is flawed

First off, watts = power factor × amps × volts.

So when you say 1 amp at 120 volts equals 120 watts.....that would only be true with a power factor of 1. If you had something that drew 1 amp at 120 volts with a power factor of 0.8 then it would be 96 watts.

The problem for the power company is it must size wire to deliver the 1 amp at 120 volts despite the fact that they bill for 96 watts (because of a power factor of 0.8). If you "corrected" the power factor to one then you would draw less current (your volt amps would go down).

BTW, 0.8 is a rather typical power factor. In fact most generators are speced assuming that power factor.

Hope this helps.


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