This paper presents a new approach for automatic generation control (AGC) of multi - area power system by means of a decentralized variable structure controller. This controller is a near-optimal controller and applied to load frequency regulation of three areas power system. This ontroller not only uses local states, but also is robust to parameter variation and disturbance rejection. A special feature of the variable structure controller is that, it can greatly improve the transient performance of the system, while keeping the steady state error at zero.

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