The cascaded H-bridge (CHB) low-capacitance stat- ic compensator (LC-StatCom) has a limited inductive region compared to a conventional StatCom, both in balanced and unbalanced conditions, due to the inherent large oscillations on the capacitor voltages. This paper presents a detailed analysis of the viable operating region in these converters that takes into account the inherent large oscillations. The analysis facilitates sizing of the dc-link capacitors to ensure that the StatCom is able to inject a given range of positive- and negative-sequence current. Though the analysis is generic and applicable to the CHB StatComs with relatively large capacitance values, it is more relevant in the LC-StatComs. In addition, the paper derives reference steady-state signals that can be used as feedforward terms in LC-StatCom control loops to enhance the control performance. The paper presents simulation and experimental results, in balanced and unbalanced conditions to corroborate the proposed analysis.