The unified power flow controller(UPFC) is one of the most effective devices in the FACTS family. This paper concerns about a filtering technique for reducing the computer calculation to determine the optimal location of UPFC in a power system. The sensitivities of the power generation cost for UPFC control parameters are evaluated. This technique requires that only one optimal power flow is run to get UPFC sensitivities for all possible transmission lines. To find out a optimal locating of a single UPFC in power system, an ideal transformer model which consists of a complex turns ratio and a variable shunt admittance was used. In this model, the UPFC control variables do not depend on UPFC input and output currents and voltages. The sensitivity method was tested on a 5-bus system derived from the IEEE 14-bus system and IEEE 14-bus system to establish its effectiveness.