The purpose of this research paper is to explore generation participation factors in power systems that can be used to optimize available transfer capabilities. This study elaborates on the various approaches that can be used to make efficient and reliable transfer between geographically dispersed areas within an inter-connected power system. Using GPF, we discuss a thorough analysis that reveals its usage in optimizing ATC by maximizing major aspects, which consist of stability of the system, economic dispatch, and contingency analysis. The theoretical concepts thus translate into practical simulations for testing the suggested methodologies. The results illustrate that strategic utilization of GPF would optimize ATC significantly with efficient use of the existing transmission infrastructure; thus, this can enhance the power system's reliability.