In this paper, a robust genetic algorithm (GA) based multi-stage fuzzy (MSF) controller is proposed for solution of the load frequency control (LFC) problem in a restructured power system that operates under deregulation based on the bilateral policy scheme. In this strategy, the control signal is tuned online from the knowledge base and the fuzzy inference, which request fewer sources and has two rule base sets. In the proposed method, for achieving the desired level of robust performance, exact tuning of the membership functions is very important. Thus, to reduce the design effort and find a better fuzzy system control, membership functions are designed automatically by modified genetic algorithms. The classical genetic algorithms are powerful search techniques to find the global optimal area. However, the global optimum value is not guaranteed using this method, and the speed of the algorithm's convergence is extremely reduced too. To overcome this drawback, a modified genetic algorithm is being used to tune the membership functions of the proposed MSF controller. The effectiveness of the proposed method is demonstrated on a three area restructured power system with possible contracted scenarios under large load demand and area disturbances in comparison with the multi-stage fuzzy and classical fuzzy PID controllers through FD and ITAE performance indices. The results evaluation shows that the proposed control strategy achieves good robust performance for a wide range of system parameters and load changes in the presence of system nonlinearities and is superior to the other controllers. Moreover, this newly developed control strategy has a simple structure, does not require an accurate model of the plant and is fairly easy to implement, which can be useful for the real world complex power systems. (C) 2006 Elsevier Ltd. All rights reserved.