Abstract: Electrical power is not only a necessity but also a tool for the determination of the economic position and growth of nations, however, the environmental restrictions have imposed more conditions on installing new transmission lines which has led to the problem of optimal reconfiguration that must be solved in an optimum manner for the electricity power companies. FACTS device provides the possibility to control both voltages, flow of power in a power system and real power losses. This study investigates the effects of a Static VAR Compensator (SVC ) on the Optimal Power Flow (OPF) of a power system. Simulation studies were carried out in MATLAB on IEEE-5 and IEEE-26 bus power system using Newton-Raphson method to validate that the SVC can effectively improve voltage profile, reduce line losses and overall cost of generating plants.