George, capacitors are energy storage devices. Any energy your capacitor stores off the grid will be returned to the grid, 120 times per second.
Your meter measures power, not volt-amps. That's true whether the current is leading or lagging voltage. Let's take three examples:
1. Motor not adjusted for PF, so let's say PF is .7. A one-horsepower motor needs 746 watts, but 1066 volt-amps.
2. Motor adjusted for unity PF. Now the 1 hp motor draws 746 watts and 746 VA.
3. Motor turned off but the PF capacitor is still in the circuit. Power is now zero, although the VA will be greater than zero (not enough info to solve for VA in this condition).
The meter compensates for the phase angle between current and voltage, so you only pay for power, not VA. The power company doesn't like a lagging power factor, because it costs them money due to line losses and increased transmission capacity requirements. Leading power factors are seldom seen in the real world.
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Today's Featured Article - A 1937 John Deere Unstuck - by Gary Hickman. Here is my story of how I got the pistons out of a 1937 JD B that the engine had been stuck for about 14 years: About 12 years ago my Dad gave me one of the tractors I ran as I was growing up on our farm in central Nebraska. The engine on this tractor, a 1937 John Deere "B", had been stuck for 2 years before he gave it to me. This last spring (1999) I hauled the tractor to our 2 acre lot in St. Libory Nebraska where it joined my antique machinery collection, at that time a 1929 Caterpillar T
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