ok...Physics lesson: When you have motorized appliances (washer, dryer, fridge etc.) they tend to be inductive (drawing varying current). This can be "neutralized" by applying a capacitive across your power meter (this is what this product offers). I am not sure about the cost reduction aspect though. In North America we do not get charged for having highly inductive loads (abusing the power grid), whereas in Europe they pay a lot extra for having inductive loads.
Now that you are totally confused...Summary says that I am not sure about the money savings, but its definitely nicer on your power company for you to have this product.
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