In previous study of the optimal operation scheduling between the hydro power station and the thermal power station, the consumption increment expansion method is often used, which ignores the transmission losses and the pumped storage power station operation conditions. However, for a bulk power system, the transmission losses should not be ignored. What's more, for the pumped storage station, the operating point of reversible pump turbine and the water flow direction in conduit system often change. Only when these characteristics are considered, the operation scheduling can be carried out. In this paper, a new optimal operation scheduling method of the pumped storage station with the thermal power station is proposed based on PSS/E OPF and IPLAN. The method can be used in the hydrothermal coordination optimal operation scheduling of bulk power system. In the end, the application of this method to the test systems is carried out. Simulation results based on the proposed method and the method of probabilistic production simulation are compared. The results show that the proposed method is valid.