Abstract— A novel precise-steps based independent active and reactive power flow controller (PSPFC) is proposed in this paper. The PSPFC is a phase-shifting and voltage-regulating device in one unit. In addition to its main windings and load tap-changing switches (LTCs), the PSPFC combines fractionally rated windings and thyristor switches. The PSPFC can provide controllable quadrature and direct voltages; and control active and reactive power flow simultaneously or selectively. In this paper, first, configuration of the PSPFC is revealed; then, ratings of windings, LTCs, and thyristor switches are determined. Following, the PSPFC is modelled in MATLAB/SIMULINK and connected to a two-bus two-machine system to investigate its steady-state behavior, power flow control limits, control preciseness, and independent power flow control capability. Based on the results, as compared to combined action of phase-shifting transformer (PST) and voltage-regulating transformer (VRT), the PSPFC is advantageous. With aid of the fractionally rated components, PSPFC possesses improved response and precise steps with the wide control range of PST and VRT retained. Consequently, PSPFC ensures not only a highly reduced control-error and smooth control-action, but also a wider power flow control range and a more independent power flow control capability. Operation of PSPFC is flexible; and action of the precise steps is fast. PSPFC is thus suitable for applications that require fast response. Operational characteristics of PSPFC are closely comparable to those of the Unified Power Flow Controller (UPFC). However, unlike the UPFC, PSPFC does not create any harmonics facilitated by its thyristor ON-OFF control.