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This paper presents a set of significant improvements made over a previously developed methodology for the design of controllers to damp electromechanical oscillations in power systems. This previous methodology was able to fulfil several practical requirements of the oscillation damping problem, related to robustness, decentralization, and output feedback structure. However, problems related to an adequate controller gain (to avoid interactions with unmodeled dynamics) and disturbance rejection (allowing the use of noisy input signals, such as the rotor speed measurements) were not treated in this previously reported methodology, and are now addressed in this work. Moreover, the requirement of zero gain in steady-state conditions is now met in a more efficient way. The results of the nonlinear simulations show the satisfactory performance of the designed controllers with respect to the mentioned practical requirements.