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This paper proposes a residue factor method to find the optimal location of the FACTS controllers. Two types of FACTS controllers have been considered, which include thyristor-controlled series compensator (TCSC) and Static Var compensator (SVC). The effectiveness of this controller depends on its optimal location and proper signal selection in the power system network. A simple approach of computing the residue factor has been proposed, which combines the linearized differential algebraic equation model of the power system and the FACTS input and output equations. The placements of FACTS controllers have been obtained for the base case and some disturbances cases. The effectiveness of the proposed method of placement is demonstrated on 10 machines, 39 bus systems called equivalent of New England test system.