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In this paper, a new method called the extended voltage phasors approach (EVPA) is proposed for placement of FACTS controllers in power systems. While the voltage phasors approach (VPA) identifies only the critical paths from the voltage stability viewpoint, the proposed method additionally locates the critical buses/line segments. The results of EVPA are compared with the well-established line flow index (LFI) method for nine-bus, 39-bus, and 68-bus systems. It is shown that the EVPA provides accurate indication for the placement of FACTS controllers.