This paper proposes a novel approach for maintenance scheduling of generating units in restructured power systems. In this approach each generating company schedules itsmaintenance activity with the target ofmaximizing benefit from selling energy in themarket. On the other side, IndependentSystem Operator (ISO) coordinatesmaintenance schedule of generating units withthe aim of reducing Market Power. MarketPower may appear when ISO is forced to buysome amount of power produced by aGENCO to satisfy network constraints. Thissituation may not arise in normal operation ofa system, but it is highly probable when thesystem load level is high and several units areout of service. Market power can lead tomarket inefficiency and cause market pricesto increase abnormally. Thus maintenancescheduling of generating unit with the aim ofreducing market power can reduce averagemarket prices. Maintenance coordinationprocedure is presented to satisfy both systemreliability and producers’ benefit. Finally,this new approach is applied on IEEE-RTStest system.

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