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A fuzzy logic based approach for the design of optimal automatic generation controllers of three area interconnected power system is proposed in this paper. A three area interconnected power system model consisting of identical power plants with reheat thermal turbines is considered as a test system. The HVDC link in parallel with EHV AC transmission line is incorporated as an area interconnection also. The studies are performed with implementing designed optimal AGC regulators on the system in the wake of 1% load perturbation in the area-1. The effect of variation in system parameters like; B and R is also studied. Simulation results indicate that the proposed optimal AGC regulators designs based on fuzzy logic concept offer appreciably better dynamic system performance and can guarantee the overall system stability even in the presence of system parameter variations.