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This paper introduces a novel method for an electric power generation system (EPGS) employing a lead-unity-lag (LUL) permanent-magnet (PM) generator operation for a direct current (DC) power distribution bus. In addition, background information of the prior art for a leading power factor EPGS is discussed. The concept of the new approach is defined and a comparative analysis between the new and old state-of-the-art solutions are documented. The performance features and technical details of the system parameters with respect to power generation system requirements are presented and discussed. Analysis and testing results are included. Finally, the advantages of this system, a conclusion, and recommendations for future work are provided. Test results from a system having elements of this novel approach are included. With this method for an LUL EPGS, the capability of the high-performance electric power generation systems is improved substantially.