d23, if you use a pwm drive, the true power factor is not unity, but typically in the order of 0.7 or less. The angle between the voltage and current is close to unity, but the current is very distorted so the harmonics cause a poor power factor. This will show up on KVA metering. (Power factor is the ratio betwen KW and KVA)
nbucska. I assume you options are using a variable speed drive at part speed, or switching the motor On and Off on demand.
This is very dependant on the application. In some cases, the machine operating at full speed, is below optimum efficiency and operating at reduced speed can improve the machine efficiency. This is true for pumps that are partially throttled, but not for pumps that are pumping with no head.
If you use a pwm control to vary the speed and optimise the operating efficiency of the machine, and as part of it's operating cycle you spend time at rated speed, you can actually pay more for the operation of the machine due to KVA Maximum demand charges.
To give a more definative answer, we need more detail of the application, operating cycle and what your tarrifs / concerns are.
Best regards, Mark Empson