Represents the portion of the apparent power that is real power. The source of power factor is non-resistive components (inductors and capacitors) in the load on an AC power system. These components draw current that is 90 degrees out of phase with the voltage across them resulting in zero real power being delivered. While the power delivery system must carry this current (as well as all the current which does result in real power being delivered), it does no useful work. Power companies often charge a penalty for loads which have a power factor that is significantly far away from 1.0 since the size of the equipment that must be in place is dependent upon the total current delivered, but normal billing is based on real power delivered.