This paper presents a new robust PID controller for automatic generation control (AGC) of hydro turbine power systems. The method is mainly based on a maximum peak resonance specification that is graphically supported by the Nichols chart. The open-loop frequency response curve is tangent to a specified ellipse and this makes the method to be efficient for controlling the overshoot, the stability and the dynamics of the system. Comparative results of this new load frequency controller with a conventional PI one and also with another PID controller design tested on a multimachine power system show the improvement in system damping remarkably. The region of acceptable performance of the new PID controller covers a wide range of operating and system conditions.