In recent years, with the increase of nonlinear loads drawing Nonsinusoidal currents, power quality distortion has become a serious problem in electrical power systems. Distortions in voltage and current wave-shapes can upset end-use equipment and cause other problems. Harmonics are a particularly common type of distortion that repeats every cycle. Poor power quality may cause many problems, such as the nonlinearity, instability and unbalance of electric network. Also, power quality problem will decrease life time of electrical instrumentation. In this paper, effects of harmonic distortion on the performance of the transformers, cables and induction motors have been studied. Then after theoretical study, harmonic and several power quality indices have been measured in a Medium Density Fiberboard (MDF) factory. The measurements show that harmonic distortion will decrease the life time of transformer and motors and also, will increase the losses and temperature of these equipments.