The paper presents the results of arc flicker investigations and harmonic measurements taken on a 55 MW arc furnace in Southern California Edison's area. The arc furnace has been in operation since 1976 and has a 65 MVAR Static Var System (SVS) installed to improve the customer's power factor, reduce the voltage fluctuations and arc furnace flicker. Although the SVS improved the power factor and reduced the voltage fluctuations and incandescent lamp flicker, it had caused considerable flourescent flicker which was specially noticeable at some remote locations about ten miles away. Because of the excessive flourescent flicker, the customer was asked to limit the arc furnace load to 40 MW. However, because of the growing demand for steel and the customer's need for additional power, studies and measurements in the field and laboratory were conducted to investigate the reasons for flourescent flicker and ways to control the flicker at increased load so that additional power could be provided to the customer. The paper presents the results of these investigations and field measurements.