A poor power factor due to induction motors, transformers, and other inductive loads can be corrected by connecting suitable capacitors. A poor power factor caused by distorted current waveform is corrected by adding harmonic filters. The process of creating the magnetic field required by an inductive load causes a phase difference between the voltage and the current. A capacitor corrects the power factor by providing a leading current to compensate the lagging current. Power factor correction capacitors are designed to ensure that the power factor is as close to unity as possible. Although power factor correction capacitors can considerably reduce the burden caused by an inductive load on the supply, they do not affect the operation of the load. By neutralizing the magnetic current, capacitors help to cut losses in the electrical distribution system and reduce electricity bills.