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Demand side management will be a key component of future smart grid that can help reduce peak load and adapt elastic demand to fluctuating generations. In this paper, the authors consider households that operate different appliances including PHEVs and batteries and propose a demand response approach based on utility maximization. Each appliance provides a certain benefit depending on the pattern or volume of power it consumes. Each household wishes to optimally schedule its power consumption so as to maximize its individual net benefit subject to various consumption and power flow constraints.
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