In the present study a comprehensive thermodynamic modeling of a dual pressure combined cycle power plant is performed. Moreover, an optimization study to find the best design parameters is carried out. Total cost per unit of produced steam exergy is defined as the objective function. The objective function includes capital or investment cost, operational and maintenance cost, and the corresponding cost of the exergy destruction. This objective function is minimized while satisfying a group of constraints. For this study, design variables are high and low drum pressures, steam mass flow rates, pinch point temperature differences and the duct burner fuel consumption flow rate. The variations of design parameters with the inlet hot gas enthalpy and exergy unit price are also shown. Finally the sensitivity analysis of change in design parameters with change in fuel and investment cost is performed. The results show that with increasing the exergy unit cost, the optimum values of design parameters are selected such that to decrease the objective function. Furthermore it is found that at higher inlet gas enthalpy, the required heat transfer surface area (and its corresponding capital cost) increases Crown Copyright (C) 2012 Published by Elsevier Ltd. All rights reserved.