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This paper presents a novel philosophy to compensate the load-reactive power demand through a three-phase unified power quality conditioner (UPQC). Most of the UPQC-based applications show the dependency on shunt inverter for load-reactive power compensation, whereas the series inverter is always looked as controlled voltage source to handle all voltage-related problems. This paper proposes a new functionality of UPQC in which both the shunt and series APFs supply the load-reactive power demand. This feature not only helps to share the load-reactive power demand, but also helps to reduce the shunt APF rating, and hence, the overall cost of UPQC. This results in better utilization of the existing series inverter. The theory and complete mathematical analysis termed as ldquopower angle control (PAC)rdquo is presented. The simulation results based on MATLAB/Simulink are discussed in detail to support the concept developed in the paper. The proposed approach is also validated through experimental study.