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This paper investigates the Multilevel Current Source Converter (MCSC) STATCOM. It proposes a new method of modulation. The new modulation method produces less THD and di/dt at the terminals of the MCSC STATCOM when compared to the widely used Phase-Shifted Carrier SPWM (PSC-SPWM). To ensure the inductors' currents remain balanced, a Current Balancing Algorithm (CBA) is presented. The CBA does not require any controls. It relies on assigning optimum switching states to each CSC module in real-time. In addition, two control strategies are presented in this paper. The first one assumes the STATCOM to be a SISO. Therefore, it only requires one PI controller. However, the gains for the controller must be changed if the STATCOM was to transition from capacitive mode to inductive mode, or vice versa. The second control strategy overcomes this problem by implementing a TITO integral state feedback controller. The contributions of this paper are validated via simulation and experimental results. [ABSTRACT FROM AUTHOR]