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A novel single-phase power quality conditioner (PQC) is presented in this paper. The proposed PQC is composed of a series active power filter (APF) and shunt passive filters connected in series to a low rating PWM converter through a coupling transformer. The series APF and PWM converter are operated from a common dc link provided by a dc storage capacitor. The proposed PQC is able to isolate the distortion between the load and the source, regulate the load voltage, and correct the load power factor displacement with a negligible distortion of the load voltage. Moreover, the PQC can realize the fault current limitation with the appropriate design and control. A detailed control strategy for the PQC is introduced in this paper. The capabilities of the proposed PQC and its control strategy are tested in a simple system (a nonlinear load is supplied by a sinusoidal or nonsinusoidal voltage source through a feeder) through digital simulations. The simulation results verify the viability and effectiveness of the proposed PQC.