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This paper introduces a new Model Predictive Control (MPC) scheme to damp wide-area electromechanical oscillations. The proposed MPC controller, based on a linearized discrete-time state space model, calculates the optimal input sequence for local damping controllers over a chosen time horizon by solving a quadratic programming problem. Local controllers considered include: Power Systems Stabilizers (PSSs), Thyristor Controlled Series Compensators (TCSCs) and Static Var Compensators (SVCs). The MPC scheme is realized and tested first in ideal conditions (complete state observability and controllability, neglecting communication and computing delays). Next, the effects of state-estimation errors, computation and communication delays, and of the number and type of available local damping controllers are studied in order to assess the versatility of this scheme. Realistic simulations are carried out using a 16 generators, 70 bus test system.