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This paper proposes a novel methodology to improve stability in a transmission system under critical conditions of operation when additional loads that take the system to the verge of stability are placed in weak bus bars according to the fast voltage stability index (FVSI). This paper employs the Newton–Raphson method to calculate power flows accurately and, based on that information, correctly calculate the FVSI for every transmission line. First, the weakest transmission line is identified by considering N − 1 contingencies for the disconnection of transmission lines, and then all weak nodes associated with this transmission line are identified. Following this, critical scenarios generated by stochastically placed loads that will take the system to the verge of instability will be placed on the identified weak nodes. Then, the methodology will optimally size and place a single static VAR compensator SVC in the system to take the transmission system to the conditions before the additional loads are connected. Finally, the methodology will be validated by testing the system for critical contingencies when any transmission line associated with the weak nodes is disconnected. As a result, this paper's methodology found a single SVC that will improve the system's stability and voltage profiles to similar values when the additional loads are not connected and even before contingencies occur. The methodology is validated on three transmission systems: IEEE 14, 30, and 118 bus bars. [ABSTRACT FROM AUTHOR]