The objective of an Energy Control Center (ECC) is to ensure secure and economic operation of power system. The challenge to optimize power system operation, while maintaining system security and quality of power supply to customers, is increasing. Growing demand without matching expansion of generation and transmission facilities and more tightly interconnected power systems contribute to the increased complexity of system operation. Rising costs due to inflation and increased environmental concerns has made transmission, as well as generation systems to be operated closure to design limits, with smaller safety margins and hence greater exposure to unsatisfactory operating conditions following a disturbance. Investigations of recent blackouts indicate that the root cause of most of these major power system disturbances is voltage collapse. Information gathered and preliminary analysis, from the most recent blackout incident in North America on 14th August 2003, is pointing the finger on voltage instability due to some unexpected contingency. In this incident, reports indicate that approximately 50 million people were affected interruption from continuous supply for more than 15 hours. Most of the incidents are related to heavily stressed system where large amounts of real and reactive power are transported over long transmission lines while appropriate real and reactive power resources are not available to maintain normal system conditions. Hence, the problem of voltage stability and voltage collapse has become a major concern in power system planning and operation. Reliable operation of large scale electric power networks requires that system voltages and currents stay within design limits. Operation beyond those limits can lead to equipment failures and blackouts. In the last few decades, the problem of reactive power control for improving economy and security of power system operation has received much attention. Generally, the load bus voltages can be maintained within their permissible limits by reallocating reactive power generations in the system. This can be achieved by adjusting transformer taps, generator voltages, and switchable Ar sources. In addition, the system losses can be minimized via redistribution of reactive power in the system. Therefore, the problem of the reactive power dispatch can be optimized to improve the voltage profile and minimize the system losses as well. The Instability in power system could be relieved or at least minimized with the help of most recent developed devices called Flexible AC Transmission System (FACTS) controllers. The use of Flexible AC Transmission System (FACTS) controllers in power transmission system have led to many applications of these controllers not only to improve the stability of the existing power network resources but also provide operating flexibility to the power system. In the past, transmission systems were owned by regulated, vertically integrated utility companies. They have been designed and operated so that conditions in close proximity to security boundaries are not frequently encountered. However, in the new open access environment, operating conditions tend to be much closer to security boundaries, as transmission use is increasing in sudden and unpredictable directions. Transmission unbundling, coupled with other regulatory requirements, has made new transmission facility construction more difficult. In fact, there are numerous technical challenges emerging from the new market structure. There is an acute need for research work in the new market structure, especially in the areas of voltage security, reactive power support and congestion management. In the last few decades more attention was paid to optimal reactive power dispatch. Since the problem of reactive power optimization is non-linear in nature, nonlinear programming methods have been used to solve it. These methods work quite well for small power systems but may develop convergence problems as system size increases. Linear programming techniques with iterative schemes are certainly the most promising tools for solving these types of problems. The thesis presents efficient algorithms with different objectives for reactive power optimization. The approach adopted is an iterative scheme with successive power-flow analysis using decoupled technique, formulation and solution of the linear-programmingproblem with only upper-bound limits on the state variables. Further the thesispresents critical analysis of the three following objectives, Viz., •Minimization of the sum of the squares of the voltage deviations (Vdesired) •Minimization of sum of the squares of the voltage stability L indices (Vstability) •Minimization of real power losses (Ploss) Voltage stability problems normally occur in heavily stressed systems. While the disturbance leading to voltage collapse may be initiated by a variety of causes, the underlying problem is an inherent weakness in the power system. The factors contributing to voltage collapse are the generator reactive power /voltage control limits, load characteristics, characteristics of reactive compensation devices, and the action of the voltage control devices such as transformer On Load Tap Changers (OLTCs). Power system experiences abnormal operating conditions following a disturbance, and subsequently a reduction in the EHV level voltages at load centers will be reflected on the distribution system. The OLTCs of distribution transformers would restore distribution voltages. With each tap change operation, the MW and MVAR loading on the EHV lines would increase, thereby causing great voltage drops in EHV levels and increasing the losses. As a result, with each tap changing operation, the reactive output of generators throughout the system would increase gradually and the generators may hit their reactive power capability limits, causing voltage instability problems. Thus, the operation of certain OLTCs has a significant influence on voltage instability under some operating conditions. These transformers can be made manual to avoid possible voltage instability due to their operation during heavy load conditions. Tap blocking, based on local measurement of high voltage side of load tap changers, is a common practice of power utilities to prevent voltage collapse. The great advantage of this method is that it can be easily implemented, but does not guarantee voltage stability. So a proper approach for identification of critical OLTC s based on voltage stability criteria is essential to guide the operator in ECC, which has been proposed in this thesis. It discusses the effect of OLTCs with different objectives of reactive power dispatch and proposes a technique to identify critical OLTCs based on voltage stability criteria. The fast development of power electronics based on new and powerful semiconductor devices has led to innovative technologies, such as High Voltage DC transmission (HVDC) and Flexible AC Transmission System (FACTS), which can be applied in transmission and distribution systems. The technical and economicalBenefits of these technologies represent an alternative to the application in AC systems. Deregulation in the power industry and opening of the market for delivery of cheaper energy to the customers is creating additional requirements for the operation of power systems. HVDC and FACTS offer major advantages in meeting these requirements. .A method for co-ordinated optimum allocation of reactive power in AC/DC power systems by including FACTS controller UPFC, with an objective of minimization of the sum of the squares of the voltage deviations of all the load buses has been proposed in this thesis. The study results show that under contingency conditions, the presence of FACTS controllers has considerable impact on over all system voltage stability and also on power loss minimization.minimization of the sum of the squares of the voltage deviations of all the load buses has been proposed in this thesis. The study results show that under contingency conditions, the presence of FACTS controllers has considerable impact on over all system voltage stability and also on power loss minimization. As power systems grow in their size and interconnections, their complexity increases. For secure operation and control of power systems under normal and contingency conditions, it is essential to provide solutions in real time to the operator in ECC. For real time control of power systems, the conventional algorithmic software available in ECC are found to be inadequate as they are computationally very intensive and not organized to guide the operator during contingency conditions. Artificial Intelligence (AI) techniques such as, Expert systems, Neural Networks, Fuzzy systems are emerging decision support system tools which give fast, though approximate, but acceptable right solutions in real time as they mostly use symbolic processing with a minimum number of numeric computations. The solution thus obtained can be used as a guide by the operator in ECC for power system control. Optimum real and reactive power dispatch play an important role in the day-to-day operation of power systems. Existing conventional Optimal Power Flow (OPF) methods use all of the controls in solving the optimization problem. The operators can not move so many control devices within a reasonable time. In this context an algorithm using fuzzy-expert approach has been proposed in this thesis to curtail the number of control actions, in order to realize real time objectives in voltage/reactive power control. The technique is formulated using membership functions of linguistic variables such as voltage deviations at all the load buses and the voltage deviation sensitivity to control variables. Voltage deviations and controlling variables are translated into fuzzy set notations to formulate the relation between voltage deviations and controlling ability of controlling devices. Control variables considered are switchable VAR compensators, OLTC transformers and generator excitations. A fuzzy rule based system is formed to select the critical controllers, their movement direction and step size. Results show that the proposed approach is effective for improving voltage security to acceptable levels with fewer numbers of controllers. So, under emergency conditions the operator need not move all the controllers to different settings and the solution obtained is fast with significant speedups. Hence, the proposed method has the potential to be integrated for on-line implementation in energy management systems to achieve the goals of secure power system operation. In a deregulated electricity market, it may not be always possible to dispatch all of the contracted power transactions due to congestion of the transmission corridors. System operators try to manage congestion, which otherwise increases the cost of the electricity and also threatens the system security and stability. An approach for alleviation of network over loads in the day-to-day operation of power systems under deregulated environment is presented in this thesis. The control used for overload alleviation is real power generation rescheduling based on Relative Electrical Distance (RED) concept. The method estimates the relative location of load nodes with respect to the generator nodes. The contribution of each generator for a particular over loaded line is first identified , then based on RED concept the desired proportions of generations for the desired overload relieving is obtained, so that the system will have minimum transmission losses and more stability margins with respect to voltage profiles, bus angles and better transmission tariff. The results obtained reveal that the proposed method is not only effective for overload relieving but also reduces the system power loss and improves the voltage stability margin. The presented concepts are better suited for finding the utilization of resources generation/load and network by various players involved in the day-to-day operation of the system under normal and contingency conditions. This will help in finding the contribution by various players involved in the congestion management and the deviations can be used for proper tariff purposes. Suitable computer programs have been developed based on the algorithms presented in various chapters and thoroughly tested. Studies have been carried out on various equivalent systems of practical real life Indian power networks and also on some standard IEEE systems under simulated conditions. Results obtained on a modified IEEE 30 bus system, IEEE 39 bus New England system and four Indian power networks of EHV 24 bus real life equivalent power network, an equivalent of 36 bus EHV Indian western grid, Uttar Pradesh 96 bus AC/DC system and 205 Bus real life interconnected grid system of Indian southern region are presented for illustration purposes.