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Abstract—In this paper, transmission congestion distribution factors (TCDFs) based on sensitivity of line real power flow and full AC load flow Jacobian sensitivity have been proposed to identify the congestion clusters. The system operator (SO) can identify the generators from the most sensitive congestion clusters to reschedule their generation optimally to manage transmission congestion efficiently. The role of thyristor controlled phase angle regulator (TCPAR) has been investigated for reducing the transmission congestion cost after locating it optimally in the system based on improved performance index. The study has been carried ou