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Power quality has become a serious concern to utilities and industrial facilities over the last decade. With more and more complicated technologies being used in industrial and commercial facilities, a highly reliable source of electricity has become essential for all users. The most common power quality problems in power systems are voltage sags and voltage flicker that can be mitigate with reactive power sources like static var compensators (SVCs). An SVC can reinstate voltage at a particular network node by absorbing or generating reactive power. In this paper a new SVC control strategy is proposed to improve the quality of distribution bus voltage. Simulation results reveal the effectiveness of the proposed controller.