The modeling idea presented in Ref. (1) is generalized to obtain the dynamical model for load-frequency control (LFC) analysis and synthesis in a bilateral-based restructured power system. In each control area, the effect of bilateral contracts is taken into account as a set of new input signals. It is assumed that each distribution company (Disco) is responsible for tracking its own load and honoring tie-line power exchange contracts with its neighbors by securing as much transmission and generation capacity as needed.
