In a liberalized electricity market, the use of phase shifting transformers or other power flow controlling devices allows the transmission system operator to utilize the available grid infrastructure in a more optimal way. However, each phase shifter adds a degrees of freedom to the control problem, making optimization more difficult. In this paper, the coordination problem is solved by using Particle Swarm Optimization (PSO). The goal is to give an overview of how PSO is used to solve this particular problem, and to demonstrate a new area of application for the method. KEY WORDS Phase Shifting Transformer, Particle Swarm Optimization, Power Flow Control, Total Transfer Capacity