There are two kinds of generation dispatch models now under trial operation in China. They are the electricity power market dispatch and the energy-saving generation dispatch. The optimal allocation of electricity resources requires the combination of two models. The theory of energy right trading and pricing is firstly presented and a new electricity power market model, namely internalization of external cost of the electricity power market, is proposed. The new model revises the market settlement with external cost, and can be compatible with former power market systems. Through the sample calculations and analyses on East China Electricity Power Market, the new model is proven to be able to realize joint optimization of energy-saving, emission-reduction and economic benefit and, therefore the minimization of social overall cost is implemented.