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In this paper we discuss an improved method for the calculation of available transfer capability (ATC) in a restructured power system. The ATC calculation is performed through an optimal power flow approach. The objective function is to maximize the sum of the receiving-end load in a specified area as well as to send generation to other control areas while a minimum cost of generation is continuously achieved. The constraints are AC power flow equations and system operation limits. It is assumed that the generation cost curve of each generator is available. A genetic algorithm is used for the optimization process. An IEEE 30 bus test system is used for testing the proposed algorithm and the results are compared with those forms the methods calculated ATC value without considering optimal power dispatch between available generators.