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A technique is developed for the optimum scheduling of real and reactive generation in which all the transmission network constraints are met. The procedure which is used utilizes a load-flow solution to satisfy the system power equations. The real and reactive schedules of the swing bus are treated as dependent variables in the optimization portion of the solution method. Inequality constraints are met as limits on the variables in the load-flow portion of the solution. The feasibility of the technique is demonstrated by means of sample systems.