The document discusses economic operation of power systems. It covers characteristics of steam and hydro plants, economic load scheduling of thermal plants with and without considering transmission losses, penalty factors and loss coefficients. It also discusses hydrothermal scheduling. The document provides information on retail electricity prices and factors contributing to prices like generation, transmission and distribution costs. It describes different generation technologies in terms of capital and operating costs. The concepts of economic dispatch formulation, incremental costs, lambda iteration method and inclusion of transmission losses in economic dispatch are explained.