This paper presents an application of layered ANN controller to study load frequency control problem in power system.The objective of control scheme guarantees that steady state error of frequencies and inadvertent interchange of tie-lines are maintained in a given tolerance limitation. The proposed controller has been designed for a two-area interconnected power system. Only one ANN, which controls the inputs of each area in the power system together, is considered. In this study, back propagation-through time algorithm is used as ANN learning rule. The performance of the power system is simulated by using conventional integral controller and ANN controller, separately. For the first time comparative study has been carried out between SMES and CES unit, all of the areas are included with SMES and CES unit separately. By comparing the results for both cases, the performance of ANN controller with CES unit is found to be better than conventional controllers with SMES, CES and ANN with SMES.