Transmission topology is traditionally considered as fixed elements in electrical system. Transmission line states used to be presumably set... Show moreTransmission topology is traditionally considered as fixed elements in electrical system. Transmission line states used to be presumably set as closed for the whole system, or sometimes open for security check purposes. In the development of a smart grid, however, the optimization of the use of transmission has been proposed as an advanced transmission technology. Optimal transmission switching (OTS) is a straightforward method to enhance grid controllability: to mitigate transmission violation, re-dispatch power generation, and meet changing demand with existing infrastructure. Previous papers have shown that co-optimization of generation and transmission problem will improve the economic performance. This thesis provides the formulation and solution methodology for applying OTS in day-ahead security-constrained unit commitment (SCUC) scheduling. Base case and contingency case are examined to ensure the feasibility of the solution. The OTS applications also consider the demand-side participation such as demand response (DR) and renewable energy. The results are presented based on a modified 6-bus system. M.S. in Electrical Engineering, May 2015 Show less