This paper describes an optimization model to be used by System Operators in order to validate the economic schedules obtained by Market Operators together with the injections from Bilateral Contracts. These studies will be performed off-line in the day before operation and the developed model is based on adjustment bids submitted by generators and loads and it is used by System Operators if that is necessary to enforce technical or security constraints. This model corresponds to an enhancement of an approach described in a previous paper and it now includes discrete components as transformer taps and reactor and capacitor banks. The resulting mixed integer formulation is solved using Simulated Annealing, a well known metaheuristic specially suited for combinatorial problems. Once the Simulated Annealing converges and the values of the discrete variables are fixed, the resulting non linear continuous problem is solved using Sequential Linear Programming to get the final solution. The developed model corresponds to an AC version, it includes constraints related with the capability diagram of synchronous generators and variables allowing the computation of the active power required to balance active losses. Finally, the paper includes a Case Study based on the IEEE 118 bus system to illustrate the results that it is possible to obtain and their interest.
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