Abstract
This paper describes a novel approach for the optimal power flow (OPF) problem in a deregulated power market using Bender's decomposition. Transmission constraints may represent intrautility flows in a generating company. The inclusion of transmission security (i.e., network) constraints will ensure a subsequent feasible solution for the OPF problem. We decompose the problem into a base-case OPF (without network constraints) and subproblems for checking the feasibility of the network constraints. For a given base-case OPF schedule applied to the subproblems, we minimize line-flow violations by adjusting phase shifters and generating units. In case the current mix of scheduled units cannot remove transmission violations, additional constraints will be introduced in the master problem for rescheduling OPF. Different systems are used to demonstrate the effectiveness of the proposed novel OPF approach.