Electric arc furnaces (EAFs) represent one of the most disturbing loads in the subtransmission or transmission electric power systems. Therefore, it is necessary to build a practical model to descript the behavior of EAF in the simulation of power system for power quality issues. This paper deals with the modeling of EAF based on the combination of extended Kalman filter to identify the parameter of arc current and the power balance equation to obtain the dynamic, multi-valued u-i characteristics of EAF load. The whole EAF systems are simulated by means of power system blockset in Matlab to validate the proposed EAF model. This model can also be used to assess the impact of the new plant or highly varying nonlinear loads that exhibit chaos in power systems.