A small wind-powered electricity generation system, providing regulated AC electric power from wind energy to a power system grid, has a wind turbine that produces less than 10 kW of peak electric power in a permanent magnet generator that produces generator power with a frequency that varies with the wind speed. The wind turbine utilizes a cross-wind type rotor having a power coefficient that varies with the operating tip speed ratio and has an optimal tip speed ratio wherein the power coefficient is maximum. A power converter, for converting generator power to regulated electric power by applying a controlled load to the generator controls the operation of the wind turbine rotor such that the operating tip speed ratio is greater than the optimal tip speed ratio in a low wind speed region, is approximately equal to the optimal tip speed ratio in a medium wind speed region, and is greater than the optimal tip speed ratio in a high wind speed region.