in this talk, we present an algorithm created for challenge 2 of the grid optimization competition from arpa-e (advanced research projects agency--energy). the competition considered a security constrained optimal power flow (scopf) problem whose solution determines optimal dispatch and control settings for power generation and grid control equipment and maximizes the market surplus associated with the operation of the grid, subject to pre- and post-contingency constraints. we will discuss the practical issues associated with the challenge and describe the approach and heuristics established to enhance performance of the algorithm submitted to the competition. results from the competition will also be presented. this is joint work with frank e. curtis (lehigh university), daniel molzahn (georgia tech), andreas w\"{a}chter and ermin wei (northwestern university)."