Hydro power plants are in general more stable to the load demands and thus the change in frequency can be easily controlled. Whereas in multi-source interconnected power system the stability of the system is marginal. In certain conditions the system is also unmeasurable to implement the load frequency control. Linear Quadratic Regulator with output feedback design forms a familiar optimal choice to tackle this problem, but the technique is dependent on the choice of the weighting matrices Q and R for the performance index.Particle swarm optimization technique is commonly used in power system applications for obtaining the weighting matrices. In this paper, an output feedback-based LQR-PID technique is used to obtain an improved response for the multisource systems. Due to integral action, the steady-state value achieved for the change in frequency is minimized. In addition, if the system is unmeasurable LQR technique cannot be applied, in the literature, Linear Quadratic Gaussian is used for the same. Here a balanced truncation model order reduction is used on the original system to convert it to a measurable system.In addition, a comparative analysis is included to highlight the efficacy of the proposed control technique.