This paper presents a new power electronic topology for a <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">STATCOM</i> allowing the generation of multilevel <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">AC</i> voltages. This topology is characterized by a modular configuration since it uses two well known four-leg two-level voltage source inverters. A <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Scott</i> transformer with multiple secondary windings connects the two four-leg inverters to the grid. One of the important features of the proposed power topology is the capability to generate <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">AC</i> voltages with high number of levels, in spite of using only two four-leg two-level voltage source inverters. To maximize the number of voltage levels a geometric progression ratio of 3 between the windings of the transformers connected in cascade is proposed. However, to reduce the turns-ratio span, alternatively a fractional geometric ratio of 1.5 is also proposed and analyzed. A control strategy adapted to the proposed power converter topology is also presented. Besides the control of the reactive power the regulation of the four-leg inverter <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">DC</i> voltage will also be considered. To support the theoretical studies and assumptions, simulations and experiments are presented. Experimental results were obtained using a low power laboratory prototype. The results shown give evidence to the characteristics and features of the proposed power converter topology and control system.