The primary objective of this research project is to develop and evaluate a fully constrained dynamic economic dispatch procedure for real and reactive power with the goal of improving system operation performance. A procedure for the fully constrained dynamic economic dispatch of real and reactive power will be developed and evaluated by incorporating it into an extended automatic generation control simulator that has been developed. The development of a procedure will include virtually all operating static operating constraints (including environmental). The incorporation of the procedure into the existing extended automatic generation control simulator will result in an enhanced simulator which will serve as a test bed for the evaluation of the fully constrained dynamic economic dispatch procedure. Evaluation and validation of the methodology will be conducted using a physical scaled model power system.