This work presents a centralized control scheme applied to a power system. The scheme has adaptive characteristics which allow the controller to keep track of the changing power system operating point and to control nonlinear functions of state variables. Feedback to the controller is obtained from phasor measurements at chosen power system buses, generator field voltage measurements, and state estimators. Control effort is aimed at minimizing the oscillations and influencing the power system state trajectory through the control of linear and nonlinear functions of state variables during a power system disturbance. The main contributions of this dissertation are the simultaneous introduction and utilization of measurement based terms in the state and output equations in the derivation and implementation of the control law, the study of limits on controller performance as the state residual vector becomes very large, and the simulation of the performance of local state estimators to prove the need for faster phasor measurement systems. The test system is a hypothetical 39-Bus AC power system consisting of typical components which have been sufficiently modelled for the simulation of power system performance in a dynamic stability study. / Ph. D.