A system for filtering harmonic frequency distortion in AC power distribution system is disclosed. The system comprises a filter configured to filter harmonic frequency from the AC power, an input sensor configured to acquire harmonic frequency level of the input AC power before filtration, an output sensor configured to acquire harmonic frequency level of the output AC power after filtration, and an interfacing module connected to the input and output sensor for acquiring signals of the harmonic frequency level of the input and output AC power measured by the input and output sensors, respectively. The interfacing module is further configured to process the acquired signals into computer readable data. The computer readable data can be accessed through remote server via IP-based communication network. A method for filtering harmonic frequency distortion of AC power and measuring power quality of the AC power is also disclosed.