In recent years developments in the application of transmission loss formulas to the economic dispatch of power systems have been very rapid. The purpose of this paper is to describe the method used to apply the loss formula principle to the calculation of transmission losses in the economic dispatch of power on the Tennessee Valley Authority (TVA) system. The paper presents the results of a study of the accuracy obtained by a selected number of methods when applied to the TVA system. It also includes the application of a rapid and systematic method of checking the validity of each set of loss formula coefficients before being put into use in the hourly economic scheduling program.