This paper presents a method to evaluate generation rescheduling priority using transient energy margin sensitivity for power system operation. A change in any of the functional parameters obviously causes a change in the energy margin. Especially the energy margin sensitivity is evaluated for change with respect to generation. For a given contingency, the energy margin is computed and the respective sensitivities are also computed. It is possible to rank the sensitivities and thereby determine the generators which will affect the energy margin most and hence affect the stability (instability) of the system. The sign of the sensitivity indicates the direction of change in generation for a given change in energy margin.