In order to achieve optimal bidding strategy of power plants in electricity market, the authors build optimal bidding model by predicting the bidding coefficients of competitors, and the optimal bidding coefficient without considering transmission capacity is achieved. Based on the bidding coefficients, the market clearing model is built, and the expected market clearing price is achieved. According to the expected values, the authors calculate the power flow. When forecasting the transmission congestion, this paper presents an optimal bidding model taking transmission congestion into account. Based on sensitivity analysis, the output regulation of power plants with minimum cost of eliminating congestion is achieved. Simulation results demonstrate that the proposed method can help power plants achieve the optimal profit.