Why is power factor such a growing concern? Electric utilities require customers to present a load to the power grid that is as near to unity power-factor as possible. The main reason is fiscal. The customer expects to pay for the real work done on the premises. If the power factor is less than 1, then the cost to deliver the peak voltage and current values in the waveform increases. This means a higher potential cost for users. Achieving maximum power factor is therefore a “win-win” for all concerned. There are further effects that power generators must contend with, that makes a unity-power-factor load highly preferable. These effects include transmission losses, overheating and overload hazards for transformers and transmission equipment in the supply grid, and reduced grid stability.