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In this paper, the use of dynamic braking as a cost-effective measure for damping inter-area oscillations is considered. Proposed control scheme assumes possibility of multiple insertions of dynamic braking resistor triggered whenever the speed of equivalent one-machine infinite bus (OMIB) system exceeds predefined value or controlled based on commanded electrical power calculated from OMIB transformation. OMIB is formed based on the measurements provided by phasor measurement units (PMUs) and data collected from energy management system. Results obtained using simple four machine and 68-bus test systems, are included to illustrate capabilities of investigated control scheme.