Our Company's Contract Demand is 110 kVA. We use 12
Capacitors each of 12.5 kVAr Capacity to maintain Power
Factor of 0.99. So, what steps should we take so that our
Contract demand does not exceed 110 kVA?

Our Company's Contract Demand is 110 kVA. We use 12 Capacitors each of 12.5 kVAr Capacity to m..

In order to know how much capacity to use one has to know
what is the now the actual power factor. Let’s say the
actual power factor is 0.8.Then the reactive power is
110*sqrt(1-0.8^2)=66 kVAr.
If the power factor is 0.99 then the reactive power from
the Utility will be 110*sqrt(1-0.99^2)=15.5 kVAr.
You have to compensate the difference 66-15.5=50.5 kVAr so
4*12.5=50 kVAr it is enough.

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