The controllable capacitive reactance can be used as the input variable for the external controller of a series capacitive reactance compensator (SCRC) to improve the damping of low-frequency oscillations of the rotor angle and active power in a power system. Conventional linear PI controllers are tuned for best performance at one specific operating point of the nonlinear power system. At other operating point its performance degrades. Nonlinear optimal neurocontrollers are able to overcome this degradation. In this paper, the dual heuristic dynamic programming (DHP) optimization algorithm is applied to design an external nonlinear optimal neuro-controller for the SCRC. Simulation studies using PSCAD/EMTDCÒ software are presented.