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With the development of Smart Grids worldwide, efforts have been focused on optimizing the role of Smart Grid in the present electrical system. The integration of renewable energy resources to the grid presents a great challenge since they are intermittent and vary constantly causing frequency fluctuations. Automatic Generation Control (AGC) solves this problem by keeping the frequency close to nominal value and maintaining the balance between generation and demand. AGC has been implemented in various softwares as an added functionality. Power Systems Analysis Toolbox (PSAT) is a MATLAB toolbox designed for power flow computations but it lacks AGC implementation. This paper presents AGC implementation on PSAT using Artificial Neural Networks (ANN) controller and PID controller. The goal is to optimize PSAT by adding extra functionalities to it. The AGC design is implemented on IEEE 14-bus system on PSAT. A comparison of ANN controller and PID controller is also presented. The results show successful addition of AGC to PSAT library. The AGC design helps to control the frequency, has high performance and can be extended to other power systems.