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Management of reactive power resources is vital for stable and secure operation of power systems in the view point of voltage stability. This paper deals with the management of on-load tap changers (OLTCs) and dynamic VAR sources (including synchronous generators, synchronous condensers, and shunt reactive power compensators) to improve voltage stability margin (VSM) of power systems. This problem is usually called optimal reactive power dispatch (ORD) in the literature. The main contribution of the paper is to introduce a new objective function for the ORD problem. The proposed objective function is derived based on a local voltage stability index, called DSY, and has a strong correlation...