This document discusses power factor, causes of low power factor, disadvantages of low power factor, and methods for improving power factor. It begins by defining power factor as the ratio of active power to apparent power. Inductive loads like transformers and motors cause low power factors by introducing reactive power. Low power factor results in larger equipment sizes, greater losses, and reduced system capacity. Methods for improving power factor include installing capacitors to offset reactive power and replacing standard motors with high efficiency models. The document concludes with a case study where installing capacitors at a factory's main board improved the average power factor from 0.75 to 0.95.