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A conventional power system stabilizer (PSS) can improve the steady-state stability margin and increase the system positive damping, but it has some drawbacks, such as the time-consuming tuning and nonoptimal damping in the entire operating process. A proportional--integral (PI) adaptive control law in simple adaptive control (SAC) can overcome these drawbacks. However, it can only be applied to the plants with almost strict positive realness (ASPR), and the computation of adaptive control law is really complex. A new improved SAC (ISAC) based on quadratic performance index was proposed. A new PSS can be designed using the ISAC. The simulation and experimental results show that this stabilizer possesses good dynamic characteristics and regulation precision. They also show that the new PSS can improve the dynamic stability of the power system and suppress the low-frequency oscillation effectively.