Fuel constrained economic dispatch (FCED) is increasingly important for utility operation and planning since it involves an even more extensive problem including a wide range of time periods of operation and planning and a larger set of constraints and variables. The fuel used in a generating unit may be obtained through different contracts at different prices. Fuel contracts are generally a takeor- pay agreement and include both maximum and minimum limits on delivery of fuel to the generating units over the life time of the contract. The fuel storage kept to prepare for inaccurate load forecasts and untimely delivery supplies is usually within a specifi ed limit [5]. The objective of FCED is to minimize simultaneously the total fuel cost and emission level of thermal generators over a schedule time horizon while satisfying power balance, fuel delivery, and fuel storage constraints and generator operating limits. FCED can be divided into long-term (weeks up to a year), short-term (days up to a week), daily (hours up to one day), and real-time (minutes up to one hour). In long-term FCED which is subject of this study, the schedule time is divided into sub-periods (months or weeks) to obtain an optimal fuel use strategy [6-7]. Assume that the entire long-term schedule time horizon is divided into M subintervals each having a constant load demand and that all generating units are available and remain on-line for M subintervals. The objective is to simultaneously minimize generation cost and emission levels of generating units over the M subintervals such that the constraints of power balance, fuel delivery and fuel storage for any given subinterval, and maximum-minimum fuel delivery, fuel storage, and generator operating constraints for each generating unit are satisfi ed. The problem formulation for a system having NG thermal generating units scheduled in M subintervals is as follows: M k NG i k i Gi k k i Gi tFPEP 11 Min ( ) ( ) (2.45) where ( ) ( k )2 i Gi k i i Gi k i GiF P a b P c P (2.46) ( ) ( k )2 i Gi k i i Gi k i Gi E P d e P f P (2.47) subject to Power balance constraint 0 1