In this paper, we propose a new mathematical model for power flow problem based on the linear and nonlinear matrix inequality theory. We start with rectangular model of power flow (PF) problem and then reformulate it as a Bilinear Matrix Inequality (BMI) model. A Theorem is proved which is able to convert this BMI model to a Linear Matrix Inequality (LMI) model along with One Nonconvex Quadratic Constraint (ONQC). Our proposed LMI-ONQC model for PF problem has only one single nonconvex quadratic constraint irrespective of the network size, while in the rectangular and BMI models the number of nonconvex constraints grows as the network size grows. This interesting property leads to reduced complexity level in our LMI-ONQC model which in turn makes it easier to solve for finding a PF solution. The non-conservativeness, iterative LMI solvability, well-defined and easy-to-understand geometry and pathwise connectivity of feasibility region are other important properties of proposed LMI-ONQC model which are discussed in this paper. An illustrative two-bus example is carefully studied to show different properties of our LMI-ONQC model. We have also tested our LMI-ONQC model on 30 different power-system cases including four ill-conditioned systems and compared it with a group of existing approaches. The numerical results show the promising performance of our LMI-ONQC model and its solution algorithm to find a PF solution.