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Optimisation of Capacitor placement in power distribution system performed with an Artificial Intelligence (A.I.) based Genetic Algorithm (G.A.). The proposed method determines the locations, size and control settings of these capacitors during each load level of the distribution system. The solution is obtained by testing various combinations of capacitor banks and candidate nodes and the distribution system and calculating the resultant savings. The capacitor placement problem is a combinational optimisation problem having an objective function composed of energy losses and capacitor bank installation costs subject to the load, network and operational constraints at different load levels. The solution algorithm has been implemented and tested on a ten bus power distribution system, and the simulation results of the proposed algorithm are well executed.