Abstract: A two mode power-split electric hybrid system and a method of control said hybrid system. The hybrid system is comprised of an engine, a transmission, an energy storage device and a control system for effecting said control method. Said transmission is a reconfigurable power split system, comprising a power-splitting device and an output power path selecting device. The power splitting device includes a compound planetary gear system and two electric machines which form a local series electric hybrid system. Said transmission regulates the output power state of said hybrid system by controlling power flow within said local series hybrid system. The hybrid system provides at least two operating mode, an output power split mode and a compound power split mode. Said control system includes multiple controllers and control modules.