In power system, oscillations may occur due to change in load or system fault which creates unsynchronized and undamped signals and creates instability in the system. So to improve the dynamic stability of the system, a control mechanism is constructed to enhance the damping of the power system.In this thesis work, different aspects of AGC are studied. The effects of integral controllers and fuzzy controller and facts controller (SMES) in an interconnected three area power system are studied. The dynamic performance of system has been compared with Proportional Integral controller, PID controller, Fuzzy Logic controller & Fuzzy Logic controller with SMES. A three area, non-reheat, AC interconnected power system is taken as a test system. The system model is developed and its dynamic performance is studied with the step load change in MATLAB Simulink.The aim of proposed system is to restore the frequency to its nominal value in the smallest possible time whenever there is change in the load demand.

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