Revenue and harmonics: an evaluation of some proposed rate structures

IEEE Recommended Practice 519 sets specific limits on harmonic voltages and currents at the "point of common coupling", which is usually interpreted as the revenue meter. Although most electric utilities will employ these limits simply to persuade and encourage their customers to reduce harmonics (and vice versa), it is also possible to construct economic incentives to encourage both the utility and the consumer to remain within the limits described in IEEE 519. This paper discusses seven approaches to this challenge, and discusses the advantages disadvantages of each. It appears that "harmonic-adjusted power factor" approach is practical, justifiable, compatible with existing rate structures, and relatively easy to implement.<>