Abstract: One example provides a power quality improvement system for an electrical power distribution system including a parameter measurement module to measure a power factor of the electrical power distribution system, a number of capacitor steps selectively connectable to the electrical power distribution system, and a number of harmonic filters connected to the electrical power distribution system, wherein a number and size of each capacitor step and a type of the harmonic filters are based on a load profile of the electrical power distribution system. A controller monitors a status of the harmonic filters and automatically connects or disconnects selected capacitor steps from the electrical power distribution to maintain the measured power factor at a set-point power factor, where a delay before connecting or disconnecting each selected capacitor step is based on a load stability factor of the electrical power distribution system, the load stability factor based on the load profile.