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The back-stepping design methodology of the math-analytical nonlinear control theory currently attracts considerable interests in many attempts of applied controls to various engineering systems, power systems being one of them. In this paper a novel nonlinear controller is designed using this methodology based on the nonlinear second-order model of single machine to infinite bus system with thyristor controlled series compensation (TCSC). Given the circumstances of indirectly measured damping coefficient being uncertainty inaccurate, a dynamic feedback controller has be designed using adaptive back-stepping method, which also encompasses the on-line real-time estimation of the uncertainty parameter. This way designed adaptive nonlinear controller is shown to possess superior performances and engineering implementation.