In this paper a heuristic technique for solving simultaneous short-term transmission network expansion and reactive power planning problem (TEPRPP) via an AC model is presented. A constructive heuristic algorithm (CHA) aimed to obtaining a significant quality solution for such problem is employed. An interior point method (IPM) is applied to solve TEPRPP as a nonlinear programming (NLP) during the solution steps of the algorithm. For each proposed network topology, an indicator is deployed to identify the weak buses for reactive power sources placement. The objective function of NLP includes the costs of new transmission lines, real power losses as well as reactive power sources. By allocating reactive power sources at load buses, the circuit capacity may increase while the cost of new lines can be decreased. The proposed methodology is tested on Garver's system and the obtained results shows its capability and the viability of using AC model for solving such non-convex optimization problem. © 2011 IEEE.