In the deregulated market scenario power saving and power factor compensation is having wide role. A single kVA saving in the load side or customer premise multiplies a lot when it is carried to the utility. Capacitor is a passive device which can be used for power factor improvement. Intelligent optimum power capacitor installation in any one of the socket plugs of residential premise can really save a lot to the utility. The project deals with the cost benefit analysis of the optimum capacitor placement in Residential Dormitories of the Asian Institute of Technology Campus which is leading international postgraduate institution having around 1300 Residential Dormitories.