True or False: A capacitor increases the overall efficiency of a distribution system.

• A. True
• B. False
• C. Only during peak load
• D. Not affected by system design

Answer: (A)

Capacitors boost distribution efficiency by providing reactive power to offset the inductive reactive power drawn by loads. When loads like motors and transformers draw reactive power, the current on the feeders increases even though the real power used isn’t growing. Adding capacitors locally reduces the amount of reactive power the system must supply, which lowers the current for the same real power. Since conductor losses rise with the square of current, this reduction in current cuts I^2R losses, improving overall efficiency. It also helps improve voltage regulation along the line, reducing voltage drop and further enhancing delivery efficiency. Remember, capacitors don’t add real power; they just supply reactive power to improve how the real power is carried. The benefit comes from proper sizing and placement, not from being limited to peak load.