A voltage regulating transformer utilizing a microprocessor and a versatile multipurpose set of hardware modules and software modules it is described. A standard tap changing mechanism is driven in response to an analog control signal to change the output voltage of the transformer in response to digitally sampled values of voltage and current which have been transformed from the time domain to the frequency domain through a software program using Fourier transform techniques. The output current is also transformed and digitally processed to determine the power factor and the direction of power flow through the transformer. By inserting the digital values of the line characteristics to the load, line drop compensation is provided for. The difference in voltage across the input and output transformers is transformed to a digital signal and internally processed to provide an indication of the position of the tap changing mechanism without relying upon mechanical devices. The various software and hardware modules are designed so as to be readily utilizable in other electrical distribution controls.