Optimal power flow (OPF) is the choice tool for determining the optimal operating status of the power system by managing controllable devices. The importance of the OPF approach has increased due to increasing energy prices and availability of more control devices. Existing OPF approaches exhibit shortcomings. Current OPF algorithms can be classified into (a) nonlinear programming, (b) intelligent search methods, and (c) sequential algorithms. Nonlinear programming algorithms focus on the solution of the Kuhn-Tucker conditions; they require a starting feasible solution and the model includes all constraints; these characteristics limit the robustness and efficiency of these methods. Intelligent search methods are first-order methods and are totally inefficient for large-scale systems. Traditional sequential algorithms require a starting feasible solution, a requirement that limits their robustness. Present implementations of sequential algorithms use traditional modeling that result in inefficient algorithms. The research described in this thesis has overcome the shortcomings by developing a robust and highly efficient algorithm. Robustness is defined as the ability to provide a solution for any system; the proposed approach achieves robustness by operating on suboptimal points and moving toward feasible, it stops at a suboptimal solution if an optimum does not exist. Efficiency is achieved by (a) converting the nonlinear OPF problem to a quadratic problem (b) and limiting the size of the model; the quadratic model enables fast convergence and the algorithm that identifies the active constraints, limits the size of the model by only including the active constraints. A concise description of the method is as follows: The proposed method starts from an arbitrary state which may be infeasible; model equations and system constraints are satisfied by introducing artificial mismatch variables at each bus. Mathematically this is an optimal but infeasible point. At each iteration, the artificial mismatches are reduced while the solution point maintains optimality. When mismatches reach zero, the solution becomes feasible and the optimum has been found; otherwise, the mismatch residuals are converted to load shedding and the algorithm provides a suboptimal but feasible solution. Therefore, the algorithm operates on infeasible but optimal points and moves towards feasibility. The proposed algorithm maximizes efficiency with two innovations: (a) quadratization that converts the nonlinear model to quadratic with excellent convergence properties and (b) minimization of model size by identifying active constraints, which are the only constraints included in the model. Finally sparsity technique is utilized that provide the best computational efficiency for large systems. This dissertation work demonstrates the proposed OPF algorithm using various systems up to three hundred buses and compares it with several well-known OPF software packages. The results show that the proposed algorithm converges fast and its runtime is competitive. Furthermore, the proposed method is extended to a three-phase OPF (TOPF) algorithm for unbalanced networks using the quadratized three-phase power system model. An example application of the TOPF is presented. Specifically, TOPF is utilized to address the problem of fault induced delayed voltage recovery (FIDVR) phenomena, which lead to unwanted relay operations, stalling of motors and load disruptions. This thesis presents a methodology that will optimally enhance the distribution system to mitigate/eliminate the onset of FIDVR. The time domain simulation method has been integrated with a TOPF model and a dynamic programming optimization algorithm to provide the optimal reinforcing strategy for the circuits.