100% agree for commerical premises with heavy motor use but not sure of any real benefit in the residential home...
http://en.wikipedia.org/wiki/Power_factor
Actually take that back... Per the followng study there is a net benefit but only when you consider the cost / impact of power generation. I'm suprised that the factor correction would not be done at the sub-divsion level.
http://www.nakahoma.com/Res%20App%20Power%20Co.pdf
My guess is they bought something like this for about $400
http://www.saveenergyllc.com/Residential.html