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Power system stabilizers (PSS) are vital to ensure small signal stability of power systems. PSS are supplied with most generators today to damp electromechanical oscillations. The paper investigates and demonstrates generator screening for PSS placement using participation factor and residue. The paper also presents comparison of two PSS tuning procedures for inter-area oscillation damping; phase lag compensation and residue based technique. Simulation results using a new linearized power system analysis package, MATNETEIG, verifies the feasibility of the placement and tuning methods.