A motor controller (4) and method for maximizing the energy savings in an AC induction motor (3) at every load wherein the motor is calibrated at two or more load points to establish a control line (6), which is then programmed into a non-volatile memory (30) of the motor controller. A DSP-based closed-loop motor controller observes the motor parameters of the motor such as firing angle/duty cycles (23), voltage (37), current (9) and phase angles to arrive at a minimum voltage necessary to operate the motor at any load along the control line. The motor controller performs closed-loop control to keep the motor running at a computed target control point, such that maximum energy savings are realized by reducing voltage through pulse width modulation.