Load frequency control includes the operating system and functions that provide real time balance of load and generation. On the other hand, depending on technical capabilities and operational constraints, generating units may be classified for participating in frequency control.Simultaneous scheduling of generation together with primary reserve, in market based power system, has been investigated during the past decade. However, in most approaches, real technical capabilities of modern generating units (such as the capability of selecting governor operation modes and selecting the ramp rate) together with operational constraints of generating units have not been considered. In this paper we propose a new approach for simultaneous scheduling of generation and primary reserve considering real technical capabilities and operational constraints of the units. The optimal scheduling is obtained using a heuristic iterative method supported by genetic algorithm. The simulations confirm that our formulation results in a more appropriate solution as compared with previous method.