Abstract: This paper presents a optimal operation model for multiple reservoir power with time varying electricity price by using the genetic algorithm.The model has been implemented in Zipingpu power station in Sichuan province.The results indicate that the operation schedules from the model are significantly different from those obtained from a similar kind of model without time varying electricity price.It is shown that competitive relationship between water supply and power generation can be coordinated effectively, besides, that the firm power can be increased.The importance of the model and its effect on water resources uses and hydropower development are emphasized.