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The object of this paper is to describe the analysis for and application of a power system stabilizer at a multi-unit pumped storage plant. An eigenvalue analysis of the installation and system was performed to characterize the plant modes of oscillation, the effect of stabilization on these modes, and the minimum number of stabilizers required for unrestricted operation. The design considerations of a microprocessor based power system stabilizer operating through excitation control are reviewed and the hardware application discussed. Finally, the results of field tests are presented to confirm the proper operation of the stabilizer and to compare with the analytical results.