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This paper discusses the problems and solutions of applying reactive compensation, either static or dynamic, to industrial power systems supplying large blocks of dc power from diode or thyristor converters. The resonance between power capacitors and system reactance can produce high harmonic voltages caused by the harmonic currents generated by converters. The interaction between these harmonic voltages and regulating systems can be minimized by the use of suitable filters. The design of these filters should eliminate the interaction between power system and load and reduce harmonic current flow. Different methods of reactive power control are also discussed.