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This paper describes the design and simulation of a static output feedback (SOF) PID automatic voltage regulator (AVR) for a synchronous-machine infinite-bus power system. The design of the regulator guarantees the stability of the closed loop system and ensures the output voltage is maintained within an acceptable threshold. In addition, it damps out local-mode oscillations of the synchronous generator to make supplementary control to provide extra damping not needed. Iterative Linear matrix Inequality (ILMI) method is developed to find the PID parameter gains of the regulator. Classical conventional IEEE type voltage is added for comparison purposes and the results are reported. The system performance is analyzed through simulating severe disturbances, different operating points and parameters variation. The system with the designed robust regulator is found to fulfill the main good excitation control requirements.