A variable speed power generator system, includes a primary power induction generator (12), a secondary control induction (14), each of the induction generators having a rotor (22, 24) mounted so as to be rotated by a common shaft (16) of a variable speed prime mover (20), an inverter (50) connected to the stator (15) of the secondary control induction generator, a controller (30) connected to the inverter controls the output of the inverter, output of the primary induction generator is connected to the grid (51), controller provides output signal to the inverter based on selected inputs to the controller so that the output of the primary induction generator matches the active and reactive power requirements of the grid. An induction machine which includes a rotor having laminations and insulated cage bars, the bars being electrically isolated from on another as well as electrically insulated from the laminations.