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Increase of nonlinear loads has led to the rise of harmonic currents, voltage distortion and imbalance in power systems. IEEE Std. 1459 proposes new definitions for electric power in sinusoidal, nonsinusoidal, balanced and unbalanced conditions which can be used for compensation of nonsinusoidal and unbalanced systems. Among different definitions, IEEE Std. 1459 proposes the new concept of effective apparent power and power factor which is more related to the real losses in a power system. In this paper, by expansion of definitions of IEEE Std. 1459, instantaneous forms of effective parameters are defined. Then, a new control strategy for a Shunt Active Power Filters (SAPFs) is defined based on the proposed method. It is also shown that this method results in minimum line losses and is more efficient in terms of compensation in power systems.