A power control system for an AC electric arc furnace. The control system includes variable reactors located intermediate a furnace power supply and arc electrodes that are height adjustable. The control system monitors operating characteristics of the furnace that are indicative of the active power consumption of the furnace and adjusts the variable reactors and the electrode height so as to minimize variations in the active power consumption. Loss of electrode arc can be predicted and countered by lowering the electrodes and decreasing the reactance of the variable reactors.
