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In order to neutralize the cross magnetizing effect of armature reaction, a compensating winding is used.
Because the compensating windings are wound to produce a field that opposes the magnetic field of the armature, they tend to cancel the cross magnetizing effect of the armature magnetic field.
Because of the commutation problems ( like armature reaction and the Ldi/dt effect)
this reduces the effect of these commutation problems!
In small generators, the effects of armature reaction are reduced by actually mechanically shifting the position of the brushes. The practice of shifting the brush position for each current variation is not practiced except in small generators. In larger generators, other means are taken to eliminate armature reaction. Compensating Windings or Interpoles are used for this purpose.
The compensation coils is located between the main field coils and connected in series with the armature to produce a magnetic flux equals in magntiude to the armature magnetic flux and opposes it in the direction due to reduce the induced back emf and reduce the induced current in the coil passes through the commutation zone to improve the commutation process and keep the brushes for alonger time.