Low frequency oscillations (LFOs) are load angle oscillations that have a frequency between 0.1-2.0 Hz. Power system stabilizers (PSSs) are very effective controllers in improvement of the damping of LFOs. PSSs are designed by linearized models of the power system. This paper presents a new model of the power system that has the advantages of the Single Machine Infinite Bus (SMIB) system and the multi machine power system. This model is named a single machine normal-bus (SMNB). The equations that describe the proposed model have been linearized and a lead PSS has been designed. Then, particle swarm optimization technique (PSO) is employed to search for optimum PSS parameters. To analysis performance of PSS that has been designed based on the proposed model, a few tests have been implemented. The results show that designed PSS has an excellent capability in enhancing extremely the dynamic stability of power systems and also maintain coordination between PSSs.