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The introduction of flexible AC transmission system (FACTS) in a power system improves the stability, reduces the losses, reduces the cost of generation and also improves the loadability of the system. In the proposed work, a non-traditional optimization technique, modified particle swarm optimization (MPSO) is used to optimize the various process parameters involved of FACTS devices in a power system. The various parameters taken into consideration were the location of the device, their type, and their rated value of the devices. The simulation was performed on a modified IEEE 30-bus power system with two types of FACTS controllers (SVC, TCSC), modeled for steady state studies. The optimization results clearly indicate that introduction of FACTS devices in a right location increases the loadability of the system and algorithm can be effectively used for this kind of optimization.