This paper presents a new neural network training algorithm which reduces the required training time considerably and overcomes many of the shortcomings presented by the conventional back-propagation algorithm. The algorithm uses a modified form of the back-propagation algorithm to minimize the mean squared error between the desired and actual outputs with respect to the inputs to the nonlinearities. Artificial Neural Network (ANN) model using the new algorithm is applied to forecast the short-term electric load. Inputs to the ANN are past loads and the output of the ANN is the hourly load forecast for a given day.