This paper presents an efficient approach to short term resource sched
uling based on the augmented Lagrangian relaxation method. The problem
is divided into two stages, the commitment stage and the constrained
economic dispatch stage. The proposed mathematical model incorporates
optimal power flow (OPF) constraints in the unit commitment stage. By
OPF constrains, we refer to the relevant active power constraints that
are incorporated in the constrained economic dispatch stage (i.e. tra
nsmission capacity constraints, fuel and various regulated emission re
quirements). The inclusion of OPF constraints in the commitment stage
will improve the feasibility of the constrained economic dispatch solu
tion. Other unit commitment constraints such as spinning and operating
reserve requirements; power balance as well as other relevant local c
onstraints (i.e. unit ramping rates, upper and lower generation limits
, minimum up and down times) are taken into account in the proposed mo
del. As we deal with a larger number of constraints, a more rigorous m
ethod is introduced for updating Lagrange multipliers to improve the s
olution convergence. A software package which addresses energy managem
ent systems requirements is developed and tested.