This document discusses reactive power, also known as imaginary power, which is caused by inductive loads on the electrical grid. Reactive power is the result of a phase shift between the voltage and current sine waves in alternating current circuits with inductors and capacitors. It does no useful work but causes higher transmission losses and costs. As transmission line lengths increase, their inductive reactance grows, requiring more reactive power support from generators through increased field excitation. Capacitor banks can be added to decrease the overall reactance seen by generators, allowing them to operate more efficiently while supplying the same real power load.