What is the purpose of power factor testing?

I recently purchased a Power Mizer Capacitor Device from a company which they claim will cut my electric bill by at least 30 %.

My electrician tells me that may be true if you use a power factor meter.

My local electric provider only have and only use killowatt meters to determine my electric bill. Frankly, I would think that the company who was promoting and marketing their product in my geographical area would know the operating practices of the electrical provider serving my home territory and not sell something that has no chance of actually working, if, that is the case.

My question is who is right , my electrician or the UMA ?

Will I see any reduction whatsoever in my electric bill or did I simply spend $995 on something frivolous and need to take action to recover my expenditures.

I appreciate your taking the time to enlighten me. Thank you.

Jack Heintzelman

In response... I assume that you are a not a commercial or industrial user? If this is the case, then your utility only bills you on the amount of energy you purchase using their kilowatt-hour meter at the origin of the supply to your premises. It does this by multiplying the in-phase component of your load current by the supply voltage and the period of time involved. Any device that acts to change the power factor of your load will have no effect on your energy bill. Power factor improvement only applies to industrial or commercial consumers.