It has recently been shown that using battery storage systems (BSSs) to provide reactive power provision in a medium-voltage (MV) active distribution network (ADN) with embedded wind stations (WSs) can lead to a huge amount of reverse power to an upstream transmission network (TN). However, unity power factors (PFs) of WSs were assumed in those studies to analyze the potential of BSSs. Therefore, in this paper (Part-I), we aim to further explore the pure reactive power potential of WSs (i.e., without BSSs) by investigating the issue of variable reverse power flow under different limits on PFs in an electricity market model. The main contributions of this work are summarized as follows: (1) Introducing the reactive power capability of WSs in the optimization model of the active-reactive optimal power flow (A-R-OPF) and highlighting the benefits/impacts under different limits on PFs. (2) Investigating the impacts of different agreements for variable reverse power flow on the operation of an ADN under different demand scenarios. (3) Derivation of the function of reactive energy losses in the grid with an equivalent-π circuit and comparing its value with active energy losses. (4) Balancing the energy curtailment of wind generation, active-reactive energy losses in the grid and active-reactive energy import-export by a meter-based method. In Part-II, the potential of the developed model is studied through analyzing an electricity market model and a 41-bus network with different locations of WSs.