With the increase in load, the AC terminal voltage and frequency at the consumer premises decreases. Hence, there is encountered a need of some simple and intelligent controller which can support both voltage and frequency under load conditions. This manuscript emphasis on implementation and testing of traditional PI and non- traditional fuzzy PI logic (FPIL) based voltage and frequency controller unit (VFCU) in MATLAB based SIMULINK environment for an IIG for step change in consumer load. The electronic Controller comprises of various elements: a 3-leg diode bridge rectifier, chopper as a switch, dc filtering capacitor, discrete PI controller block, fuzzy logic controller block, and a resistive type dump load. The transient and the steady state behavior of IIG-VFCU system is examined and tested under different operating conditions to illustrate the efficaciousness of intelligent controller as compared to traditional PI controller. The performance enhancement of IIG is attained relating to rise time, settling time, overshoot and THD values using the planned intelligent controller.