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The static synchronous compensator (STATCOM) is one of the flexible AC transmission system (FACTS) devices. The STATCOM and wide area measurement system (WAMS) are used in power systems. This paper describes the coordinated design of the wide area controllers and STATCOM controllers using a bacterial foraging algorithm (BFA). BFA is a new type of global optimization algorithm. The parameters of the controllers are optimized simultaneously by using the BFA to minimize the fitness function. The fitness function is the performance of the integral of the time-weighted squared error (ITSE). The fitness function is calculated by solving the differential equations. A 10-machine 39-bus new England system is a complex power system and is used to test the method of the coordinated design. The results show that the coordinated design of these controllers can improve the damping of the interconnected power system.