The content of this dissertation consists of three parts. In the first part, optimal control strategies are developed for Unified Power Flow Controller (UPFC) following the clearance of fault conditions. UPFC is one of the most versatile Flexible AC Transmission devices (FACTs) that have been implemented thus far. The optimal control scheme is composed of two parts. The first is an optimal stabilization control, which is an open-loop ‘Bang’ type of control. The second is an suboptimal damping control, which consists of segments of ‘Bang’ type control with switching functions the same as those of a corresponding approximate linear system. Simulation results show that the proposed control strategy is very effective in maintaining stability and damping out transient oscillations following the clearance of the fault. In the second part, a new power market structure is proposed. The new structure is based on a two-level optimization formulation of the market. It is shown that the proposed market structure can easily find the optimal solutions for the market while takeing factors such as demand elasticity into account. In the last part, a mathematical programming problem is formulated to obtain the maximum value of the loadibility factor, while the power system is constrained by steady-state dynamic security constraints. An iterative solution procedure is proposed for the problem, and the solution gives a slightly conservative estimate of the loadibility limit for the generation and transmission system
