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An approach to reactive power optimization and optimal VAR compensation planning, which is based on direct Newton method, active set and quadratic penalty function, is presented in this paper. This approach is of robust and accurate convergent characteristic. The computation time is directly proportional to network size, and the initial points do not affect the solved optimal result. The program package by this method has been extensively used in China since 1985, and the operational experiences are satisfactory. Some of the optimal numerical results are presented. Other aspects of the program and some calculation results are also addressed.

The significant effect of power system stabilizer (PSS) in damping the low frequency oscillation and improving the stability of power system by field tests are discribed. At the same time, the conditions of appearance of low frequency oscillation are stated. The negative damping causing the low frequency oscillation are mainly from the excitation system of synchronous generator in power system.