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This paper proposes a coordinated fuzzy constrained optimal power dispatch (CFCOPD) algorithm for bilateral contract, balancing electricity, and ancillary services markets. The CFCOPD problem is decomposed into social welfare fuzzy maximization subproblem, which is solved by mixed-integer fuzzy linear programming (MIFLP), and combined reactive power cost and cost of real power loss fuzzy minimization subproblem, which is solved by fuzzy linear programming (FLP). The proposed CFCOPD algorithm is tested on the modified IEEE 30-bus system and the Thai power 424-bus system. The dispatch results show that the social welfare of the fuzzy constrained competitive electricity and ancillary services price (CEASP) scheme with bilateral contract curtailment bids is higher than those of competitive electricity price (CEP) scheme and CEASP scheme with and without bilateral contract curtailment bids, leading to a lower average electricity price.