Automatic generation control (AGC) plays a very important role in power system as its main role is to maintain the system frequency and tie line flow at their scheduled values during normal period and also when the system is subjected to small step load perturbations. Many investigations in the field of automatic generation control of interconnected power system have been reported over the past few decades. AGC refers to the automatic control over the generation of electrical power so as to maintain the desired system frequency and to meet the predetermined interchanges with neighbouring control areas in an economic way whenever there is a variation in load. When a small load disturbance occurs, power system frequency oscillations continue for a long duration, even in the case with optimized gain of integral controllers. However the problem of instantaneous mismatch between the generation and demand of active power can be greatly reduced by incorporation of a fast-acting energy storage device like SMES unit to damp out the oscillations in the shortest possible time. Also TCPS can be used to regulate the flow of power.