Let's start at the front of your house or in this case, the incoming power source.
The electric meter that gets read each month by your power company. This determines the amount of Kilo Watt Hours (kWh) your meter runs and this affects the amount you owe each and every month (some months more than others).
What you do not realize unless of course you are in the electrical field is that when an appliance turns on, like your refrigerator an inrush of current is forced to start up the motor feeding the appliance.
This INRUSH of current or the "Reactive Power" is what causes the electricity to go back out from your meter and back to the nearest Power Utility Transformer, whether it's on a pole by your house or a ground mounted transformer in your neighborhood.
In essence what is happening at the speed of light is your appliance is asking the utility companies transformer to allow a little more current to become available for a short amount of time to run the applianceRead More »from Does Your Power Company Tell You How to Save Electricity Each Month?