The energy crisis of the 1970s and the continuing emphasis on efficiency (the conservation of fuel resources) has led to a complete overhaul of the way in which power systems are analyzed and improved thermodynamically. The new methodology is exergy analysis and its optimization component is known as thermodynamic optimization, or entropy generation minimization (EGM). This new approach is based on the simultaneous application of the first and second laws in analysis and design. In the 1990s it has become the premier method of thermodynamic analysis in engineering education (Moran, 1989; Bejan, 1982, 1996a,b, 1997; Feidt, 1987; Sieniutycz and Salamon, 1990; Kotas, 1995; Moran and Shapiro, 1995; Radcenco, 1994; Shiner, 1996; Bejan et al., 1996) and it is now sweeping every aspect of engineering practice (Stecco and Moran, 1990, 1992; Valero and Tsatsaronis, 1992; Bejan and Mamut, 1999; Bejan et al., 1999). It is particularly well suited for computer-assisted design and optimization (Sciubba and Melli, 1998; Sciubba, 1999a,b).