With the increasing demand for better dispatch management by the power industry, more accurate and reliable daily generation scheduling is required. Given the limitations of the traditional daily generation schedule which only covers active power generation optimization with less accurate transmission security assessment as well as network loss management, a new daily generation scheduling model and associated optimization method are proposed. This new approach uses network topology and parameters obtained through state estimation and bus load forecast to construct security constraints. It considers the market and security benefits in its objective function and is able to deal with network operation uncertainties. The decoupled AC-DC interactive optimization method is used in this model. A decision-making method integrating AC power flow analysis and active power optimization is proposed as well. The approach has strong engineering applicability and is able to achieve high accuracy in network loss management and security constraints. Case studies using IEEE 30-bus system are given to validate the proposed method.