This document calculates the size of capacitors needed for power factor correction on a 3-phase 480V, 60Hz system supplying 640kW at a power factor of 0.8. It determines that 3 capacitors of 2381.69uF each are needed to correct the power factor to 0.92. It then calculates the annual cost savings from $56,144,000 to $56,135,058.22 by installing the capacitors, providing an annual savings of $8,941.80.