This paper describes the result of a Study for the Optimum Operating method with Spinning reserve in case of outage of large generator unit to improve the system stability and prevent the system frequency drop. This is usually done by governor free operation, so we focused our attention to the operating Char acteristics of spinning reserve. Nexy, a study was made to mesure the upper limit of Spinning reserve and when this upper limit cannot match the required power, a relationship between the amount of spinning reserve and that of the load shedding requirement was searched with regard to several system operating conditions to use it in our future system operation. By this study, the optimum system operating method was recommended for reliable operation of power system.