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This paper describes the finite-element method of predicting the flux distribution, the no-load magnetization curve, and the load excitation of saturated electrical machines. The method is applied to a 2-pole, 500 MW turbo-generator. The predicted no-load magnetization curve, the power output, the terminal voltage and the power factor for given excitations agree with test results. By applying the method to determine the flux-ampere-turn relationship for a saturated stator teeth, it is shown how the mnethod can be applied to improve the conventional methods of magnetic circuit design.