The Capacitor Placement Optimization Tool (CAPOT) is a software application designed to assist Gulf Power engineers in the effective and efficient distribution of capacitors on distribution lines. The CAPOT application consists of three main parts; a power flow program that finds low voltage buses and/or a low substation power factor, a capacitor placement program that finds the optimal placement and operation of capacitors for effective voltage and reactive power support, the installation costs, and the cost savings associated with reduced line losses, and a GUI (graphical user interface) that helps the user create the text input profile of the system or use an existing input profile, run the power flow and placement program, and view the output files generated by both programs. The project was a success in that it met all initial design requirements as well as finding the most efficient operation of capacitors under different loading conditions.