Energy usage in the form of electricity constitutes a large portion of energy consumption in developed countries. Electric energy is generated from primary energy sources such as coal, nuclear, natural gas, petroleum, hydro, geothermal, etc. The generation, management, and utilization of electric energy is constrained with technological factors, environmental and safety considerations, capital requirements, etc., resulting in limitations of primary energy source utilization. This paper describes an interactive computer program which has been developed to aid the instruction of problems related to primary energy source utilization for the production of electric energy. The computer program has been developed for a graduate course on power system planning. The program can be used to study the major implications of alternative national energy policies, as well as utility originated policies. Examples are load or supply management, dispersed or central storage, dispersed generation, cogeneration, plant conversion, etc. The paper describes the interactive simulation program and associated theory and three examples of computer program utilization.