The introduction of competition in electricity market emphasizes the importance of sufficient transmission capacities to guarantee various electricity transactions. Therefore, when dispatch scheduling, transmission security constraints should be considered for the economic and stable electric power system operation. In this paper, we propose an optimal dispatch scheduling algorithm incorporating transmission security constraints. For solving these constraints, the dispatch scheduling problem is decomposed into a master problem to calculate a general optimal power flow (OPF) without transmission security constraints and several subproblems to inspect the feasibility of OPF solution under various transmission line contingencies. If a dispatch schedule given by the master problem violates transmission security constraints, then an additional constraint is imposed to the master problem. Through these iteration processes between the master problem and subproblems, an optimal dispatch schedule reflecting the post-contingency rescheduling is derived. Moreover, since interruptible loads can positively participate as generators in the competitive electricity market, we consider these interruptible loads active control variables. Numerical example demonstrates efficiency of the proposed algorithm.