ibkenb,
I've had some experience with customers contesting their electric bill claiming that the revenue power meter was being driven fast by the harmonic currents. We had one consultant in town that liked to push this theory onto his customers to enhance his business and push for his special black boox to filter harmonics.
Harmonic currents have a positive, negative, and zero sequence value to them, depending on the harmonic number. Some harmonics want to push the meter faster, some want to push it backwards. Because of the stiffness of the utility bus at the high-side of the typical utilization transformer, the typical customer with his harmonic currents has little effect on the voltage waveform of adjoining customers being served by a different utlization transformer, USUALLY. Voltage harmonics push AC motors both faster and slower than the base frequency. This results in heating and a reduction in the available capacity in the motor. There are two losses here, electrical heating losses, and loss of equipment capacity or availability. For the manufacturer, these are real losses, even though he may not be aware of the cause of his "weak" motors.
I believe it was an IEEE paper that covered the accuracy of revenue metering in the face of heavy harmonics. The result was that while it was possible to mess up the metering in the laboratory by injecting extremely heavy harmonic currents, in the real world the amount of error harmonics would induce would be negligible. This is talking about measuring the real power.
There is one problem in measuring reactive power with revenue meters, there is no standard established on what constitutes reactive power, at least not for revenue meters. This was as of 5 years ago anyway. I know the mathematics can be crunched out and ..... Is reactive power all non-fundamental power / current flow? How about all current flowing 90 degrees out of phase with the voltage? Some people ascribe to the former, I follow the latter.
A case study.....
Park City, Utah had some severe harmonic problems. Being a rural (but expensive) area the electrical system wasn't that stiff. During the winter a preponderance of the electrical load was the ski resorts, which are dominated by variable speed drives on ski lifts and snow making equipment. One part of town had their clocks running fast whenever a particular ski lift was running because the harmonics were so bad. Most drives were 6 pulse. Ski lift motors were between 300 hp and 1000 hp. The revenue metering was running fine, both real power and reactive power metering. Nothing was noted out of the ordinary. Eventually a system-wide study was funded jointly between the utility and the ski resorts to solve the harmonics problem. Harmonic filters were strategically installed on 480 volt buses, and all new drives had to be 12-pulse or higher. Without the filtering any shunt capacitors would likely of had a difficult life with the voltage harmonics. This was the most extreme case I've seen. In this case filters and shunt capacitors were the answers to the problem, and at a much lower cost.
I have seen studies done on synchronous reactance controllers. They were all being installed on transmission systems. Because almost all transmission systems are well balanced, balancing the voltage is almost a non-issue. They do a good job fixing power factor, and because of the high-speed nature of the electronics, they can straighten out the voltage waveform quite well if you have voltage harmonics. The main application for these units is dynamic system stabilization and high-speed correction & manipulation to affect load flows on transmission systems. I don't know the voltage your's will be installed on. I have heard that thy've come out with 15 kV class units with similar capabilities, and I think even some 600 volt class units. A 10% reduction in total power consumption sounds like someone slipped a cog, or at least a decimal point. Ask for their calculations. If they won't give them to you then assume that it's a smokescreen and a sales pitch.
Mark