This paper presents an economic dispatch procedure for allocating generation in a power system by the use of the Jacobian matrix. The major advantage of the procedure over other optimal dispatch procedures is its inherent simplicity and rapid convergence behavior which are characteristics particularly omportant for on-line implementation. Results obtained from an investigation of its convergence for the 118 bus IEEE system are given. Comparisons with the classical approach are conducted and logic for on-line implementation is presented.