The Power Quality has become the main factor in our life. If this quality of power is being polluted over the Electrical Power Network, serious problems could arise within the modern social structure and its conveniences. The Nonlinear Characteristics of various office and Industrial equipment connected to the power grid could cause electrical disturbances to poor power quality. In many cases the electric power consumed is first converted to different form and such conversion process introduces harmonic pollution in the grid. These electrical disturbances could destroy certain sensitive equipment connected to the grid or in some cases could cause them to malfunction. In the huge power network identifying the source of such disturbance without causing interruption to the supply is a big problem. This paper attempts to study the power quality problem caused by typical loads using computer models paving the way to identify the source of the problem. PSB (Power System Blockset) Toolbox of MATLAB is used for this paper, which is designed to provide modern tool that rapidly and easily builds models and simulates the power system. The blockset uses the Simulink environment, allowing a model to be built using simple click and drag procedures.