In power systems, energized transmission line when slightly loaded unloaded, or open-circuited (disconnected), the voltage at the receiving-end will often be greater than the voltage at the sending-end. This phenomenon is known as Ferranti Effect. This paper investigates transient overvoltage caused by energization of unloaded transmission line based on analysis, and EMTP-ATP modeling and simulation. Solution to reduce and control overvoltage is demonstrated using shunt reactor compensation technique