This paper presents modeling of unified power quality conditioner (UPQC) in load flow calculations for steady-state voltage compensation. An accurate model for this device is derived to use in load flow calculations. The rating of this device as well as direction of reactive power injection required to compensate voltage to the desired value (1 p.u.) is derived and discussed analytically and mathematically using phasor diagram method. Since performance of the compensator varies when it reaches to its maximum capacity. modeling of UPQC in its maximum rating of reactive power injection is derived. The validity of the proposed model is examined using two standard distribution systems consisting of 33 and 69 nodes, respectively. The best location of UPQC for under voltage problem mitigation in the distribution network is determined. The results show the validity of the proposed model for UPQC in large distribution systems. (C) 2009 Elsevier Ltd. All rights reserved.