A large power system may be viewed as an interconnection of several lower order subsystems, each of which is required to operate with as much autonomy as possible. Owing to the complexity of the present-day interconnected pouer systems, the application of multi-level control strategies for load frequency control situations is assuming importance. This paper reports the application of a two-level control scheme to a multiarea power system model, which includes the effects of the excitation system, the speed-governing mechanism and a single time-delay voltage regulator. Apart from the local controls, corrective controls are provided to minimise the deviation from the decoupled optimum, due to the presence of interconnections. The global controller used attempts to utilise certain possible beneficial aspects of the interconnections to give more desirable system performances.