A switched reluctance drive, operating either as a motor or a generator, is controlled in a stable manner in the continuous current mode in the presence of supply voltage or electrical load variation. The use of a current control parameter Ix in addition to the conventional on- and off-angles θon, θoff gives the ability to operate smoothly in the continuous current mode and to transition smoothly between operating modes. Once the phase current reaches a pre-determined level Ix, the phase winding may be placed in a freewheel state, thereby controlling the standing current in the phase winding and/or the output voltage.