In this paper we develop a model and technique for solving the combine
d hydro and thermal unit commitment problem, taking into full account
the hydro unit dynamic constraints in achieving overall economy of pow
er system operation. The combined hydrothermal unit commitment problem
is solved by a decomposition and coordination approach. Thermal unit
commitment is solved using a conventional Lagrangian relaxation techni
que. The hydro system is divided into watersheds, which are further br
oken down into reservoirs. The watersheds are optimized by Network Flo
w Programming (NFP). Priority-list-based Dynamic Programming is used t
o solve the Hydro Unit Commitment (HUC) problem at the reservoir level
. A successive approximation method is used for updating the marginal
water values (Lagrange multipliers) to improve the hydro unit commitme
nt convergence, due to the large size and multiple couplings of water
conservation constraints. The integration of the hydro unit commitment
into the existing Hydro-Thermal Optimization (HTO) package greatly im
proves the quality of its solution in the PG&E power system.