In this paper, a small-signal dynamic model of a single-machine infinite-bus (SMIB) power system that includes IEEE type-ST1 excitation system and PSS based on transfer function structure is presented. The changes in the operating condition of a power system on dynamic performance have been examined. The dynamic performance of the closed-loop system is analyzed base on its eigenvalues. The effectiveness of the parameters changes on dynamic stability is verified by simulation results. Three types of PSS have been considered for analysis: (a) the derivative PSS, (b) the lead-lag PSS or conventional PSS, and (c) the proportional-integral-derivative PSS. The objective function is formulated to increase the damping ratio of the electromechanical mode eigenvalues. Simulation results show that the PID-PSS performs better for less overshoot and less settling time compared with the CPSS and DPSS under different load operation and the significant system parameter variation conditions.