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This paper describes a novel generation rescheduling method to reduce the generator rotor shaft impacts induced by transmission loop closures. The rotor shaft impact constraints, at the instant of transmission loop closure, are explicitly modeled into an interior point optimal power flow. This method represents a considerable improvement on the conventional redispatch for reducing the standing phase angle of the closing breaker. Optimal power flow and transient stability results are provided for a tutorial four-bus and the IEEE 118-bus test systems.