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In this letter, the effects of line compensation of an single-machine infinite-bus power system using fixed-capacitor thyristor-controlled reactor-type or SVC for transient stability enhancement are analyzed. In particular, a novel method for analysis of line compensation by an SVC is presented. The maximum power transfer, for line compensation by FACTS controllers can be written in the form=(1-k) where is the maximum power transfer for the uncompensated line and k is the degree of compensation. The analysis revealed that the effectiveness of the SVC for stability enhancement is increased if the degree of compensation of the line is increased.