This paper presents a new multi-objective optimization based reactive power price clearing (RPPC) mechanism, considering voltage stability. Use of realistic voltage dependent load models is important in power system analysis and optimization. The influence of the same on RPPC is investigated in this paper. Investigations have also been carried out to ascertain the effectiveness of objectives such as, Total Payment Function (TPF), Loss Minimization (LM), Load Served (LS) and Voltage Stability Enhancement Index (VSEI). The unsuitability of LM/TPF minimization as independent or joint objective(s) for this problem, clue to load served reduction is emphasized. The effect of loading condition on judicious combination of these objectives is further probed. The multi-objective RPPC problem is solved using Strength Pareto Evolutionary Algorithm (SPEA). Some of the results are also compared with the Multi-Objective Particle Swarm Optimization (MOPSO). The utility of the proposed approach is demonstrated through detailed investigation on IEEE 30 bus system considering base and stressed cases with constant and voltage dependent load modeling. (C) 2011 Elsevier Ltd. All rights reserved.