Abstract Power system operational planning to utilize the existing capacity in the best possible manner is of prime importance and is particularly relevant in a developing economy. This modeling exercise presents an integrated approach for the multiarea short-term operational planning of the power system. It considers various related activities like coal mining, transportation, generating unit maintenance and generation scheduling, demand-side management options, and unmet energy distribution among different areas in case of inadequate system capacity. The power system operations are required to meet multiple objectives, namely minimizing the total costs, minimizing the total emissions, and maximizing the generating system reliability (minimizing the loss of load expectation). A compromise programming approach is adopted to arrive at the best compromise among these noncompensatory objectives. Thus it is a systems approach to power system planning that uses a multiobjective framework to integrate all related activities in system operation. Finally, a number of potential applications of the model for policy analysis purposes have been suggested.