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In this paper, a novel transformer structure is proposed in order to manufacture a high-power active filtering device. The novel transformer structure contains one primary and multiple secondary windings. The system configuration and compensation principle are addressed in detail. The fundamental magnetic flux compensation in the case of the transformer with multiple secondary windings is fulfilled. In addition, a three-phase active power filter topology consisting of three independent transformers with multiple secondary windings is presented so that the filter can run under unbalanced loads. The parameters of hysteresis current control are also analyzed in detail. A simple and practical fundamental detecting approach is discussed. Transient response and fault protection schemes are explained. A set of automatic three-phase active power filtering devices has been constructed and operated in the field. The field test results verify the validity of the novel transformer structure and the active power filtering system. [ABSTRACT FROM AUTHOR]