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Bandwidth constraints could have an adverse impact on the flexible AC transmission system (FACTS) controllers relying on signals communicated from distant locations. An observer-driven system copy (OSC) architecture is adopted here to deal with low data rates caused by the limited bandwidth availability. The basic idea is to use the knowledge of the nominal system to approximate its actual behavior during the intervals when data from the remote phasor measurement units (PMUs) are not available. This is corrected whenever the most recent states are obtained from the reduced-order observer at the PMU location. The closed-loop behavior deteriorates as the operating condition drifts away from the nominal. Nonetheless, significantly better response is achieved under limited bandwidth availability compared to the conventional approach of communicating the measured outputs. The deterioration is quantified in terms of the difference between the nominal and the offnominal condition.