In stressed power system due to the presence of increased nonlinearity and the existence of nonlinear modal interactions. there exist some limitations to the use of conventional linear system theory to identify the optimum sites for a controller. This paper suggests an approach based on the method of normal forms to identify the optimum sites for controllers with incorporating the nonlinear interaction . In this paper, nonlinear participation factors and coupling factors are proposed as measures of the nonlinear interactions, and identification procedure of optimum sites for a controller is also proposed. The proposed procedure is applied to the 10-generator New England System and the KEPCO System in the year of 2010, and the results illustrate its capabilities.