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This paper presents a novel hybrid series-parallel switched/modulated FACTS-based filter/compensation scheme (SCC) developed by the First Author for smart grid applications. The proposed FACTS filter/compensation device comprises a hybrid series and shunt switched capacitor-banks controlled by a dynamic time decoupled multi-regulator multi-loop error driven inter-coupled Weighted-Modified PID (WMPID) controller. The effectiveness of the proposed low cost Pulse Width Modulated (PWM) scheme is validated using MATLAB-Simulink digital simulation results. The coordinated dynamic controller ensures FACTS device effectiveness in limiting inrush current conditions, enhancing bus voltage stabilization, improving feeder voltage regulation, reducing total harmonic distortion, and enhancing power factor at both source and load buses. The unified AC system was validated for both normal operation and load change conditions.