Very high penetration levels of wind generation in the McCamey area of west Texas have introduced a number of engineering and operational challenges for AEP Texas Transmission. To ensure reliable reactive compensation support to the wind power generation under steady-state conditions and during transient disturbances on the network, three dynamic reactive compensation systems (DRCS) were designed and installed in the area in 2005/2006. This paper provides a background to the need for the compensation system and describes the details of the system control methodology, and the simulation and analysis performed to verify the proper operation of the controls