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The dynamic voltage restorer (DVR) as a means of series compensation for mitigating the effect of voltage sags has become established as a preferred approach for improving power quality at sensitive load locations. Meanwhile, the cascaded multilevel type of power converter topology has also become a workhorse topology in high power applications. This paper presents the detailed design of a closed loop regulator to maintain the load voltage within acceptable levels in a DVR using transformer coupled H-bridge converters. The paper presents system operation and controller design approaches, verified using computer simulations, and a laboratory scale experimental prototype.