Wisconsin · investor-owned utility
We Energies: power factor rules
Large primary-voltage customers have on-peak billed demand adjusted up or down around an 85% power factor. Secondary-voltage commercial schedules have no power-factor adjustment.
Power-factor rule confirmed Tariffs checked 2026-10-03
Smaller customers
Secondary-voltage commercial and industrial schedules (Cg 2, Cg 3, Cg 3S, Cg 3C) have no power-factor adjustment in the tariff.
The power-factor rule
Cp 1 General Primary time-of-use (the same formula appears in Cp FN, Cp 3, Cp 3S and Cp 4)
Applies to: Three-phase primary service (about 3,810 V and up), with a monthly minimum billed on-peak demand of 300 kW.
How it works: On-peak billed demand is adjusted by the peak-period power factor (from kWh and lagging kVARh). Below 85%, billed demand rises; above 85%, it falls. Under Cp FN there is no credit for leading power factor.
Formula: Below 85%: billed on-peak demand = measured × [1 + 0.65 × (0.85 − PF)]. Above 85%: measured × [1 − 0.5 × (PF − 0.85)].
Example: Illustration of the adjustment only: at 0.75 PF the multiplier is 1 + 0.65 × 0.10 = 1.065, so 6.5% more on-peak demand is billed. At 0.95 PF it is 1 − 0.5 × 0.10 = 0.95, so 5% less. Your actual bill also depends on firm and non-firm demand, off-peak comparisons and minimums. Illustration, not a bill estimate; billed demand, measurement intervals, minimums and credits determine the actual adjustment.
"Billed on-peak demand = (measured on-peak demand) [1 + (0.65)(0.85 - peak power factor)]"
Source: Wisconsin Electric Power Company, Volume 19 – Electric Rates, Schedule Cp 1, Sheet 68 (Rev. 4), Determination of Demand (2). Sheet 68 effective January 1, 2023. Checked 2026-10-03; review by 2027-10-03.
What to do next
- Size the kVAR for your load.
- Send us a bill and we'll tell you what you're paying and what correction is worth.
Cities we serve in We Energies territory
- Milwaukee, WI
- Kenosha, WI
- Racine, WI
- Appleton, WI
- Waukesha, WI
- West Allis, WI
- Wauwatosa, WI
- Brookfield, WI
- Menomonee Falls, WI
- New Berlin, WI
- Oak Creek, WI
Tariffs change. This summary reflects the documents cited above as checked on 2026-10-03; your utility's current rate schedule and your bill govern what you pay.