Since transmitting reactive power over long distances is not feasible, power factor correction capacitors are used to provide local reactive power compensation. This text provides a step-by-step approach to the fundamentals, capacitor applications, protection issues, and system impact based on practical installations involved in designing power system capacitors. It describes the fundamentals of capacitors focused on the power factor correction, industry standards, capacitor specifications, protection of shunt capacitors, maintenance of capacitor banks, and system impact issues. This is a valuable tool for any power system engineer in industry, utilities, consulting, and practical power system evaluation.