This report covers the modeling of the standard IEEE 14 bus system using thePower System Toolbox (PST) package. The basic system is tested under large andsmall disturbances to study the dynamic behavior of the system and the stabilitymargins associated with the different configurations of the system.As a suggested solution to increase stability margins of the system, FACTScontrollers are added, modeled and tested to show the effect of these controllers onthe different stability margins under both large and small disturbances.This report covers the modeling of the standard IEEE 14 bus system using thePower System Toolbox (PST) package. The basic system is tested under large andsmall disturbances to study the dynamic behavior of the system and the stabilitymargins associated with the different configurations of the system.As a suggested solution to increase stability margins of the system, FACTScontrollers are added, modeled and tested to show the effect of these controllers onthe different stability margins under both large and small disturbances.