Note that fully loaded means the load motor is mechanically fully loaded to its
nameplate hp. Under light loads, a load motor will be a very reactive load,
which can lead to some wildly misleading amp clamp readings when driven by a
reactive source like a rotary converter.


Correct. The load motor has a low power factor when unloaded or lightly loaded,
and the power factor improves as the mechanical load on the motor increases.

Nothing says you can't compensate for this by adding a PFC cap at the load
motor.