In this paper the use of compensation based on a combination of active plus reactive power at distribution model system is proposed. The basic voltage-power relationships for the linearized case on an infinite bus are used and the compensation angle is defined based on the voltage magnitude response to small power injection. Compensation is supplied at several locations, and the system is subjected to varying fault scenarios, with its response observed under different system conditions. A number of control issues for a storage-based, active / reactive power compensator as a bus voltage regulator are explored to compare the effectiveness of active / reactive against reactive-only compensation.