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I think that the error you are seeing is unrelated to the PSS messages you are getting. LUT generally stands for lookup table. I would suggest looking at UEL models and seeing whether any machines are outside their reactive limits, or active power greater than PMAX.
I would start looking at the swing bus, and then any machines you have added to the case (or other machines in the area) which have a terminal voltage of 0.9861 pu. Did you get any suspect initial conditions?
