This document describes a simulation study of a PI-controlled three-phase shunt active power filter using hysteresis current control. Shunt active power filters can compensate for harmonics and reactive power required by non-linear loads. The filter employs fast Fourier transform to calculate the reference compensation current. Hysteresis current control is used to inject the compensation current into the line. Simulation results show the filter is able to mitigate harmonic distortion, reactive power compensation, and improve power factor, while maintaining total harmonic distortion within IEEE standards.