The operation of a voltage source converter (VSC) with regeneration capability, controllable power factor, and low distortion of utility currents is analyzed at increased utility voltage. Increase in the utility voltage causes a VSC to saturate and enter a nonlinear mode of operation. To operate under elevated utility, two steps are taken: (1) a pulse width modulation (PWM) algorithm is implemented which extends the linear region of operation by 15%, and (2) a PWM saturation regulator is used to control the reactive current at higher utility voltages. The PWM algorithm reduces the switching losses by at least 33% and the effect of blanking time by one-third. All analytical results are experimentally verified on a 100 kW three-phase VSC.