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This paper deals with the development of dynamic model of a power system with UPFC in synchronously rotating d- q axes reference frame. A comprehensive approach for designing the optimum UPFC controllers using Genetic and Evolutionary Algorithms (GEA) is presented. Investigations reveal that the real and reactive power flows on the line are controlled in a decoupled manner. Studies also show that the dynamic response for DC bus voltage is somewhat superior with pre-control signal based DC voltage regulator as compared to that obtained with conventional P-I type DC bus voltage regulator.