In domestic and industrial applications, the automatic AC voltage regulator is an important device especially during AC voltage fluctuations. Multi tap transformer based solutions are presented in many studies, however the smoothness and performance quality are depends on the number of taps of transformer in this solution the steps of voltage controlling equal to the number of taps of transformer, that means, the AC voltage connection is for 220 volt levels through controlling function as well as only one tap used in one time while other taps did not use. The AC load which connected to the regulator output terminals suffer and effect negatively from this spikes during steps of controlling jumps among high voltage levels. This study presents a novel design and simulation results of an automatic 7-steps AC voltage regulator that to avoid the problem of voltage surge at relay contacts. On the other hand, the proposed design offers removing the necessity of increasing taps number as what happened in the multi tap transformer that for smooth voltage for. This study proposes a novel design based on two binary weighted step down transformers that to delivers 7-steps AC voltage controlling function through jumping among low voltage levels. Multisim software for electronic design and PSIM software for power circuit design are used to do the proposed design and simulation results.