This paper presents an efficient and reliable Annealed Demon (AD) algorithm for the Environmental/Economic Dispatch (EEB) problem. The EED problem is a multi-objective non-linear optimization problem with constraints. This problem is one of the fundamentals issues in power system operation. The system of generation associates thermal generators and emissions which involves sulphur oxides (SO2) and nitrogen oxides (NOx). The aim is to minimize total fuel cost of the system and control emission. The proposed AD algorithm is applied for EED of a simple power system.