The past several years have strongly anticipated the advent of a more integrated system control combining active power and voltage-reactive power controls. This paper presents a new approach to the intergrated system control with primary emphasis on the development of a new control method which combines the conventional economical load dispatching(ELD) and voltage-reactive power controls. The control method, in its fundamental principle, first determines the optimal active power allocation in accordance with the conventional ELD controller. By a proper manipulation of the remaining reactive power sources in the system, the control method then reduces the transmission losses of the system by the adjustment of system voltage distribution and also by the proper allotment of reactive power flows.