`Smart Grid' is an initiative to modernize the existing electric power system, which is envisioned to be integrating necessary devices for its most efficient operation. One such operation is increasing electric power flow in existing transmission lines with the use of a goal-oriented SMART power flow controller (SPFC). A SPFC controls the flows of active power and reactive power in a transmission line independently. The direct benefit of independent control is to maximize the useful active power flow while minimizing the less desirable reactive power flow, thereby reducing losses due to the reactive power flow in a transmission line. An additional benefit is the ability to increase power flow through the desired transmission paths that have high impedances, low power flow, and low line utilization. Also, grid congestion is avoided by redirecting the excess power flow from an overloaded line to underloaded lines, instead of tripping the overloaded line when power is needed the most.