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In this paper a realistic model of seasonal production planning in the Swedish State Power Board (SSPB) System is described. This model properly accounts for the nonlinearities introduced by variable head losses and state dependent control constraints in the hydro system. The seasonal hydro-thermal problem exhibits certain complex features that prevent the use of existing nonlinear programming theory for its solution. The paper presents the development of a method of solution which recast the problem into a network flow formulation and employs network flow algorithms. This paper presents the latest developments in the area of network flow modelling for operations planning at the SSPB. For implementation of this scheme, to facilitate its use by operational engineers an information system is set up which will enable efficient handling of data bases and computational routines.