Voltage regulators are transformers that can increase or decrease the voltage on a distribution circuit to help keep the voltage within a pre-determined band. Unlike capacitor banks, voltage regulators cannot adjust power factor. They typically monitor the voltage at the location where they are connected, comparing it to a programmed set point. If the voltage deviates too far from the set point, the voltage regulator can adjust its output voltage by moving the tap on the secondary side up or down.