This paper presents a new AGC simulation model for deregulated power systems, which
simplifies the design of the controller by concentrating mainly on load disturbances due to contract
violation of DISCOs in the system. In each area of the proposed AGC model thermal, hydro and gas
generators are considered to be part of generation control. Frequency variation due to the bilateral
contract loads is also studied with the help of DPM (DISCO participation matrix) concept. The
MATLAB/SIMULINK model of the proposed model is presented for the contracted load and UN
contracted load. Performance of the designed controller in controlling the frequency of the system
under contracted load and UN contracted load deviation is analyzed using simulation results.