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This work aims in analyzing the changes in the behavior of a transmission system upon the addition of compensating devices. The performances of various controllers such as Shunt Capacitor, FACTS (Flexible AC Transmission System) etc. connected to a system are studied. A comparative study is carried out to determine the best controller for a given operating condition. A test case is framed to determine the optimal location for placing FACTS controllers in a long transmission line in order to deliver maximum power and minimize transmission losses and also to enhance the receiving end voltage.

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