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In this study is presented an algorithm for optimal reactive dispatch problem. The algorithm is based on Newton's method and Primal-dual logarithmic barrier method. A Lagrangian function is associated with the modified problem. The first order necessary conditions for optimality are reached by Newton's method, and by updating the penalty and barrier terms. The proposed approach does not have to identify the biding constraints set and can be utilized to infeasible starting point. The effectiveness of the proposed approach has been examined by solving the Brazilian 53-bus and IEEE 162-bus systems.