System Benefits of Power Factor Improvement
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D — It minimizes the reactive power burden on generators and transmission equipment. Local compensation reduces the reactive current carried upstream.
PF ↑ → current ↓ → losses and kVA burden ↓.
A transients are not the purpose. B power-factor improvement increases usable system capacity rather than decreasing it. C it tends to reduce, not increase, transmission cost for a required power transfer. D correctly states the reactive-burden benefit.
Saying power-factor correction reduces the load’s real kW demand. It mainly reduces reactive demand and line current for the same useful real power.
Fixed kW: current is inversely proportional to power factor.