This paper presents a new approach for deriving a power system aggregate load area model (ALAM). In this approach, an equivalent area load model is derived to represent the load characters for a particular area load of a power system network. The Particle Swarm Optimization (PSO) method is employed to identify the unknown parameters of the generalised system, ALAM, based on the system measurement directly using a one-step scheme. Simulation studies are carried out for an IEEE 14-Bus power system and an IEEE 57-Bus power system. Simulation results show that the ALAM can represent the area load characters accurately under different operational conditions and at different power system states.