This research proposes a new approach for the problem of FACTS equipment optimal location in a transmission system. SVC and TCSC devices help to increase the controllability of flow over the lines and at the same time enhance the system stability. A meta-heuristic algorithm is developed to efficiently find a good quality solution. The meta-heuristic evaluates in one objective function both the steady state benefits and stability enhancement that the device or devices provide to the system. There is no limit of FACTS that may be installed in the system as long as each one justifies its investment cost by a reduction on the overall generation costs and losses in a 5 term year period. The Matlab toolbox, PSAT, is used to run the necessary routines in order to evaluate the objective function. PSAT runs the dynamic and steady state routines. The implemented algorithm finds good quality solutions that optimize the betterments that FACTS provide to the transmission systems and is tested over a 9-bus and a 39-bus test system obtaining satisfactory results.