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This paper proposes new methodology for the placement of FACTS devices in transmission systems to reduce congestion. Congestion management comprises congestion relief and congestion cost. The traditional approach to remedying congestion lies in reinforcing the system with additional transmission capacity. Although still feasible, this approach is becoming more and more complex and it is often challenged by the public [1]. Congestion relief can be handled by using FACTS devices, where transmission capability may be improved. Congestion relief using FACTS devices requires a two step approach: first, the optimal location of these devices in the network and then, the settings of their control parameters. UPFC and IPFC have full dynamic control on the transmission parameters, voltage, line impedance and phase angle. Real Genetic Algorithm (RGA) optimization technique is used to solve this congestion relief problem while analytical hierarchy process (AHP) with fuzzy sets is implemented to evaluate RGA fitness function. The results are obtained for modified IEEE 5 bus Test System.