Economic pressure and environmental factors have forced the modern power systems to operate closer to their stability limits. However, maintaining transient stability is a fundamental requirement for the operation of interconnected power systems. In North America, power systems are planned and operated to withstand the loss of any single or multiple elements without violating North American Electric Reliability Corporation (NERC) system performance criteria. For a contingency resulting in the loss of multiple elements (Category C), emergency transient stability controls may be necessary to stabilize the power system. Emergency control is designed to sense abnormal conditions and subsequently take pre-determined remedial actions to prevent instability. Commonly known as either Remedial Action Schemes (RAS) or as Special/System Protection Schemes (SPS), these emergency control approaches have been extensively adopted by utilities. RAS are designed to address specific problems, e.g. to increase power transfer, to provide reactive support, to address generator instability, to limit thermal overloads, etc. Possible remedial actions include generator tripping, load shedding, capacitor and reactor switching, static VAR control, etc. Among various RAS types, generation shedding is the most effective and widely used emergency control means for maintaining system stability.In this dissertation, an optimal power flow (OPF)-based generation-shedding RAS is proposed. This scheme uses online transient stability calculation and generator cost function to determine appropriate remedial actions. For transient stability calculation,SIngle Machine Equivalent (SIME) technique is used, which reduces the multimachine power system model to a One-Machine Infinite Bus (OMIB) equivalent and identifies critical machines. Unlike conventional RAS, which are designed using offline simulations, online stability calculations make the proposed RAS dynamic and adapting to any power system configuration and operating state. The generationshedding cost is calculated using pre-RAS and post-RAS OPF costs. The criteria for selecting generators to trip is based on the minimum cost rather than minimum amount of generation to shed. For an unstable Category C contingency, the RAS control action that results in stable system with minimum generation shedding cost is selected among possible candidate solutions. The RAS control actions update whenever there is a change in operating condition, system configuration, or cost functions. The effectiveness of the proposed technique is demonstrated by simulations on the IEEE 9-bus system, the IEEE 39-bus system, and IEEE 145-bus system.This dissertation also proposes an improved, yet relatively simple, technique for solving Transient Stability-Constrained Optimal Power Flow (TSC-OPF) problem. Using the SIME method, the sets of dynamic and transient stability constraints are reduced to a single stability constraint, decreasing the overall size of the optimization problem. The transient stability constraint is formulated using the critical machines’ power at the initial time step, rather than using the machine rotor angles. This avoids the addition of machine steady state stator algebraic equations in the conventional OPF algorithm. A systematic approach to reach an optimal solution is developed by exploring the quasi-linear behavior of critical machine power and stability margin. The proposed method shifts critical machines active power based on generator costs using an OPF algorithm. Moreover, the transient stability limit is based on stability margin, and not on a heuristically set limit on OMIB rotor angle. As a result, the proposed TSC-OPF solution is more economical and transparent. The proposed technique enables the use of fast and robust commercial OPF tool and time-domain simulation software for solving large scale TSC-OPF problem, which makes the proposed method also suitable for real-time application.