This paper considers an application of Newton's optimal power flow to the solution of the secondary voltage/reactive power control in transmission networks. An efficient computer program based on the latest achievements in the sparse matrix/vector techniques has been developed for this purpose. It is characterized by good robustness, accuracy and speed.A combined objective function appropriate for various system load levels with suitable constraints, for treatment of the power system security and economy is also proposed.For the real-time voltage/reactive power control, a suboptimal power flow procedure has been derived by using the reduced set of control variables. This procedure is based on the sensitivity theory applied to the determination of zones for the secondary voltage/ reactive power control and corresponding reduced set of regulating sources, whose reactive outputs represent control variables in the optimal power flow program. As a result, the optimal power flow program output becomes a schedule to be used by operators in the process of the real-time voltage/reactive power control in both normal and emergency operating states. . His current research interests include real-time preventive control of electric power systems and optimal power flow analysis. Petar RistanoviC was born in Belgrade, Yugoslavia, on august 1 , 1958. He received the B.S. degree in electrical engineering from Belgrade University in 1983. Since 1984 he has been working in the Electrical Engineering Institute Nikola Tesla, Belgrade, Automatic and Control Division. His current research interests include real--time security analysis,optimal power flow analysis and expert systems for real-time optimal voltage control.