Pf Correction At The Motor Load To Reduce Losses

Good Afternoon - I am an energy manager at a large company - not an engineer. However, I have been told by our engineers that applying power factor correction capacitance at the individual motor loads can reduce electrical distribution losses. I think it comes from reducing line losses and other losses in the system. I also read the power factor link on the L M Photonics site which, in part reads as follows:

"The magnetizing current and the leakage reactance can be considered passenger components of current that will not affect the power drawn by the motor, but will contribute to the power dissipated in the supply and distribution system. Take for example a motor with a current draw of 100 Amps and a power factor of 0.75 The resistive component of the current is 75 Amps and this is what the KWh meter measures. The higher current will result in an increase in the distribution losses of (100 x 100) /(75 x 75) = 1.777 or a 78% increase in the supply losses.
In the interest of reducing the losses in the distribution system, power factor correction is added to neutralize a portion of the magnetizing current of the motor. Typically, the corrected power factor will be 0.92 - 0.95 Some power retailers offer incentives for operating with a power factor of better than 0.9, while others penalize consumers with a poor power factor. There are many ways that this is metered, but the net result is that in order to reduce wasted energy in the distribution system, the consumer will be encouraged to apply power factor correction."

However I also read in the posts that PF correction does nothing to reduce kWh consumption. I am a little confused. It seems as though from the section above that PF correction at the individual loads would help mitigate some losses in my facility's electrical distribution system and that should show up at the meter. What am I missing here? Please help!