Optimal compensator structure for linear time-invariant plant with inaccessible states

The problem is considered of designing an optimal linear time-invariant dynamic compensator for the regulation of an n-th order linear time-invariant plant with m independent outputs. The initial plant state is characterized by its first and second moments, and the cost is usual quadratic infinite-time penalty on the state and control, averaged over the initial plant and compensator states. The compensator is based on a minimal-order Luenberger observer and consequently has fixed dimension n-m. Necessary and sufficient conditions are derived for optimality of the compensator gains. The optimal compensator is shown to be unique if the plant has a particular canonical form, and, in general, for any arbitrary plant, the class of all optimal compensators is precisely determined.