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Voltage flicker and harmonics are the types of power-quality problems that are introduced to the power system as a result of arc furnace operation. Utilities are concerned about these effects and try to take precautions to minimize them. Therefore, an accurate model of an arc furnace is needed to test and verify proposed solutions to this end. In this paper, an arc furnace model is developed and implemented in a Simulink environment by using chaotic and deterministic elements. Moreover, the modeling and simulation of an IEC flickermeter are also performed to evaluate the severity of fluctuations in the simulated arc furnace voltage.