Abstract—Due to economic, environmental and technological changes, consumption of Natural Gas (NG) for generation of electricity has burgeoned over the last two decades. This has led to strong interdependency between NG and electricity systems. Studies indicate a great reduction in total operating cost after considering NG transmission in power system operation. As Fuel consumption of compressor stations plays a major role in the NG transmission cost which constitutes of up to 75% of the overall expenses. In this paper a novel approach to integrated operation of two systems with consideration of 2nd-fuel is introduced. Static load flow equation of NG and electricity system is modeled as an optimization problem with focusing on compressor station roles. The aim is to Minimized total operating cost of both systems. Simulation result of Khorasan Province NG and electricity Network show success in power plant fuel management and great reduction in total cost of two systems especially in peak condition.

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