In this paper the functional modeling (FM) method developed for efficient solution of simulation, planning and control problems in large power systems and interconnections is presented. In the first part of the paper outline of the FM method is given. According to the FM method a power system is represented by hierarchical model, consisting of systems of equations of subsystems (lower level) and system of equations of higher level, in which only boundary variables of subsystems are present. Next part of the paper is devoted to description of hierarchical algorithms for solution of power flow , optimization and stability analysis problems of power systems, based on the FM method. It is shown in the last part of the paper how general structure of the FM algorithms and principles of the FM method are used to form the basis, on which construction and functioning of distributed control system assuring optimal operation control in large integrated electrical power systems is founded.
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