Stability of any power system is a major issue for secure operation of the system. The stability of power system is concerned with the behavior of synchronous generators following disturbances. Transmission system in competitive market refers to over loading of transmission lines or transformers due to market settlement. Thus there is a need of enhancing transmission capability of the network. FACTS controllers have the capability of controlling power flow by means of controlling line parameters, voltage injection at some of the angle. In the proposed work optimal location for installation of FACTS device is obtained using NN and the amount of voltage and angle to be injected in the system using UPFC is calculated using Bees algorithm. The method is tested on IEEE 26 bus system but it is general in nature and can be applied to any power system. The results exhibit the performance of the method in maintaining the system stability and АТС enhancement.