<p><p> One of the important issues in the operation of power system is Automatic Generation Control (AGC). It helps in supplying adequate and consistent electric power with good quality. It is secondary control in LFC which re-establishes the frequency to its nominal value (50 Hz). This project the methods of artificial intelligence is to study for the AGC of interconnected two area thermal power system using PI controller and Artificial Neural Network (ANN). The proposed control has been designed for a two area interconnected power system that two area include steam turbines, ANN controller, which controls the inputs of each area in the power system together is considered. The working of the controller is simulated using MATLAB/SIMULINK package. The controller is simulated using MATLAB and compared the results of simple PI controller with ANN based controller. From this controller we can control the frequency deviation and tie line power transfer. Advantages of this controller on a wide range of operating conditions will be shown. Simulation results using MATLAB/SIMULINK will be carried out.</p></p>