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This paper presents an artificial neural network (ANN)-based coordination control scheme for under load tap changing (ULTC) transformer and STATCOM. The objective of the coordination controller is to minimize both the amount of tap changes of the transformer and STATCOM output while maintaining an acceptable voltage magnitude at the substation bus. The coordination controller is designed to substitute for a classical ULTC mechanism by utilizing active and reactive powers, tap position, and STATCOM output. A competitive ANN is used as a classifier for tap positions and trained by a proposed iterative condensed nearest neighbor (ICNN) rule.