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An eigenstructure-based performance index is proposed in this paper to measure the dynamic performance of the system as well as control efforts. Calculation of this index is based on eigenstructure of the closed loop system and the design parameters; it does not rely on control structures. Therefore, this index can be applied for solving structurally constrained control problems. A tuning scheme based on this index is proposed for coordinating power system stabilizers (PSSs) and supplementary damping controllers (SDCs) for flexible AC transmission systems (FACTS) devices to damp inter-area oscillations of systems and to optimize their control efforts under multiple operating conditions. Both PSSs and SDCs utilize control structures as a low order single-input-single-output phase lead-lag compensator. Wide-area signals are employed to upgrade their effectiveness in damping inter-area oscillations. Time delays caused by usage of wide-area signals are also considered in the tuning scheme. Results of simulation on a four-machine two-area system and the New England and New York interconnected system show that the proposed index is effective in measuring dynamic performance of the system and the coordinatedly tuned PSSs and SDCs based on this index can robustly damp inter-area oscillations of systems with optimized control efforts.