How Does a Neighbor's Low Power Factor Affect My Utility Charges and Meter Readings?

If a business near my home has a low power factor of say 0.80 will my utility company also penalize my monthly charges because of the low power factor? Or stated another way, how does a utility company know who on the common distribution line is causing the low power factor?

Please provide answer with supporting calculations. I think only customers with poor power factor have to pay a penalty because each of the loads on a distribution line are in parallel and the data collected at each meter is unique to each load. Correct?

Residential customers don't pay power factor penalties, only large commercial customers with inductive loads.

Hello Leo Eden,I personally think that power factor must be high if you need not want to pay a plenty and there are some more calculations and terms they use for monthly charge.
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