Long-term gas purchase contracts usually determine delivery and payment for gas on the regular hourly basis, independently of demand side consumption. In order to use fuel gas in an economically viable way, optimization of gas distribution for covering consumption must be introduced. In this paper, a mathematical model of the electric utility system which is used for optimization of gas distribution over electric generators is presented. The utility system comprises installed capacity of 1500 MW of thermal power plants, 400 MW of combined heat and power plants, 330 MW of a nuclear power plant and 1600 MW of hydro power plants. Based on known demand curve the optimization model selects plants according to the prescribed criteria. Firstly it engages run-of-river hydro plants, then the public cogeneration plants, the nuclear plant and thermal power plants. Storage hydro plants are used for covering peak load consumption. In case of shortage of installed capacity, the cross-border purchase is allowed. Usage of dual fuel equipment (gas–oil), which is available in some thermal plants, is also controlled by the optimization procedure. It is shown that by using such a model it is possible to properly plan the amount of fuel gas which will be contracted. The contracted amount can easily be distributed over generators efficiently and without losses (no breaks in delivery). The model helps in optimizing of fuel gas–oil ratio for plants with combined burners and enables planning of power plants overhauls over a year in a viable and efficient way.