An intelligent power factor correction scheme is presented for three phase low power factor loads. This new scheme is able to perform individual phase sensing of parameters by monitoring at all times to sense a change in system parameters and affects individual phase correction by applying the exact amount of reactive components needed for each phase, and can also reduce negative sequence current caused by the load to improve system balance. An optimization criterion is used for the proper calculation of reactive power steps in a power compensation installation of capacitor banks. The criterion is enabled by sampling measurements performed on the electrical plant examined within specific interval of time.