Utilities deliver both active (or real) power and reactive (or imaginary) power along their distribution lines. Real power does the actual work when you flip on a light switch. Certain energy loads, such as motors and refrigerators, include energy storage elements that periodically need to reverse the direction of energy flow. This electric power from stored electromagnetic energy, which returns to the source in each cycle, is known as reactive power.
FERC has announced that all entities providing reactive power service must have a rate schedule on file with the Commission. Recognizing the significance of this decision, FERC also announced that it will be holding a workshop to discuss the specifics of this policy change and how parties will be expected to implement the new requirements.