This paper focuses on the modeling of wind turbines equipped with direct drive permanent magnet synchronous generators for fundamental frequency power system simulations. Specifically, a procedure accounting for the system active power losses to initialize the simulation starting from the load flow results is proposed. Moreover, some analytical assessments are detailed on typical control schemes for fully rated wind turbine generators, thereby highlighting how active power losses play a fundamental role in the effectiveness of the wind generator control algorithm. Finally, the paper proposes analytical criteria to design the structure and the parameters of the regulators of the wind generator control scheme. Simulations performed with Digsilent Power Factory validated the proposed procedure, highlighting the impact of active power losses on the characterization of the initial steady state and that the simplifying assumptions done in order to synthesize the controllers are consistent with the complete modeling performed by the aforementioned power system simulator.