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American Electric Power's (AEP) Static Var System (SVS) was placed in service at the Beaver Creek Station in eastern Kentucky in November 1980 and has since maintained an excellent record of operation. Special design features of this SVS installation, characterized by a coordinated control of two thyristor controlled reactors (TCR), two thyristor switched capacitors (TSC), and four vacuum switched capacitors, allow significant technical and economic advantages as well as flexible and reliable operation. A comprehensive energization and performance test program conducted prior to placing this device in commerical operation, complemented by three years of excellent operating experience, has confirmed that the sophisticated SVS technology can be successfully integrated into a power system. Furthermore, experience indicates that the SVS can be, in many regards, a superior alternative to the more conventional technology, i.e. synchronous condenser, for voltage control purposes.