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This paper presents a new method using GADS Toolbox in MATLAB (A Genetic Algorithm Approach) to find the optimal solution of optimal power flow based transmission losses. Optimal power flow (OPF) is a key area of concern in electric industries. The basic OPF solution is obtained with objective function as production cost minimization while satisfying a set of system operating constraints. For reactive power optimization the OPF problem is formulated as minimization of system active power losses and improvement in voltage stability of the system. In this paper GA based optimal power flow solution is presented for IEEE 30-bus test power system with objective as transmission losses minimization and optimal results by GA are also compared with solution obtained by using Particle Swarm Optimization Technique.