The basic concepts, which are related to the PSS tuning conditions and performance conditions for the safe of determination of PSS gain and compensation of phasor lagging, are thoroughly investigated in this first part. The performance conditions, where the power system has the lowest inherent damping torque and PSS should provide maximum damping torque, are examined by analysing synchronizing torque and damping torque supplied by the voltage control loop at the oscillation frequency. PSS tuning conditions are also investigated by observing the phasor lagging and the gain, resulted from power system-generator-excitation system depending on operating conditions, such as generator active power, reactive power, transmission impedance and AVR gain. The basic concepts developed in this PartImake it possible to lay foundation for the discussion of PSS tuning in Part II