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This paper presents a new approach to determine the power that can be extracted from a wind farm for a given wind speed, while dispatching the rest of the system to have minimum cost. Obtaining exact power output by considering the power losses inside wind turbine is a challenge in implementing a more accurate economic dispatch pattern. An iterative algorithm combining optimal power flow for minimum generation cost with steady state conditions of a Doubly-Fed Induction generator (DFIG) is proposed to overcome the above challenge. The method presented here can accommodate all the losses inside the wind farm hence more accurate results can be obtained.