Congestion management is one of the most challenging tasks of a system operator to ensure the operation of transmission system within operating limits. In this paper, cluster/zone method and relative electrical distance (RED) method for congestion management are compared based on the considered parameters. In the cluster/zone method, rescheduling of generation is based on user impact on congestion through the use of transmission congestion distribution factors. In the RED method, the desired proportions of generations for the desired overload relieving are obtained. Even after generation rescheduling, if congestion exists, load curtailment option is also introduced. Rescheduling cost, system cost, losses, and voltage stability parameter are also calculated and compared for the above two methods of congestion management. The results are illustrated on sample 6-bus, IEEE 30-bus, and Indian utility 69-bus systems.