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The paper presents a new design procedure of an autonomous area regulator for automatic generation control (a.g.c.) of interconnected power systems. The regulator is of proportional-plus-integral type. It applies the basic concept of optimal linear regulators, using a reduced number of measurements from its own power area, as in the conventional control schemes. It is found that both the regulator structure and the steady-state system performance are the same as in the case of conventional control, with significant improvement of system transients. These features are advantageous from the implementation point of view, compared to the previously suggested linear regulator schemes that required the transmission of some measurements from neighbouring areas. The paper gives an analytical derivation of the autonomous a.g.c. system design and some digital simulation studies performed on a linearised state-space model of a 2-area interconnected powersystem.