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This paper develops a signal processing, time-frequency analysis-based analytic solution to locate transient capacitor switching disturbances. The flow of transient disturbance energy caused by the capacitor switching is determined by the time and frequency localized phase difference. Cross time-frequency analysis provides time- and frequency-localized phase difference between the transient voltage and current disturbance waveforms which determine the direction of transient disturbance energy flow. The time and frequency localization properties of the proposed scheme allows one to expand the application to complicated power distribution systems without knowledge of system parameters, capacitor size, and configuration. The proposed scheme has been verified by the electromagnetic transients program simulation for all possible spatial locations of the capacitor switching.