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In this paper, a generalized frequency domain method is proposed to obtain the switching frequency formulation for hysteresis current controlled voltage source inverter (VSI)-based shunt compensator. The formulation obtained from the high-frequency model based on the Tsypkin's method explicitly shows the relation between the maximum switching frequency with the system and design parameters. The shunt compensator has been used for the load compensation in a distribution system for both weak and strong feeder supplying a nonlinear load. The maximum switching frequency has been shown related with hysteresis bandwidth and parameters of the VSI, feeder, and load of the distribution system. It is shown that the feeder and load reactance has a significant effect in determining the maximum switching frequency for the weak feeder distribution systems. However, the maximum switching frequency is mainly dependent upon the shunt compensator parameters for strong feeder distribution systems. The minimum switching frequency in general depends upon the modulation depth of the VSI. The results are verified using as power systems CAD (PSCAD) simulation studies for single-phase load compensation. A laboratory model distribution system has been used for the experimental verification.