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Starting large motors at a remote mine or petrochemical sites can have a significant impact on power quality that may be in some cases be translated into hundreds of thousands of dollars per hour. Back-up generators used to supply power when the main grid is unavailable, must react fast enough to restore bus voltage to rated levels. In this paper, a model of Automatic Voltage Regulator equipped with a Dynamic Voltage Restorer (DVR) which is a custom power quality device is developed using real-world data synchronous machine manufacturer data sheets, and then its performance is assessed on an isolated power system experiencing voltage sag. The modeling, simulation and analysis are presented and the results are discussed.