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This paper presents an application of a coordinated static VAr compensator (SVC) device as additional control for the reactive power (VAr) optimization problem and analyzes the impact on system loss and voltage profile. The coordinated SVC model controls internal, local, and remote devices simultaneously. It has two modes of operation: 1) voltage-control mode; and 2) Q control mode. This paper analyzes the functions of the coordinated SVC and implements them in the practical power systems. The impact of VAr optimization with coordinated SVC model on loss minimization and voltage enhancement are also discussed by comparing it with VAr optimization with general SVC model as well as VAr optimization without the SVC model.