The present disclosure is directed to a system and method for controlling an electrical power system connected to a power grid. The method includes determining, via a negative sequence regulator programmed in a controller of the electrical power system, a negative sequence component of at least one electrical condition of the electrical power system. Further, the method includes determining a desired current response based on the negative sequence component of the at least one electrical condition of the electrical power system. Thus, the method also includes determining a control command for the power converter as a function of the desired current response so as to achieve a desired relationship between a voltage condition in the power grid and the negative sequence component of the electrical condition of the electrical power system.
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