  Retail electrical power marketers, also known as retailers, typically set up
contracts with suppliers to secure electricity at fixed prices on the one hand
and with end users to meet their load requirements at agreed rates on the other
hand. Also high penetration of distributed generation (DG) resource is
increasingly observed worldwide. Considering the viewpoint of a retailer, this
paper analyzes the problem of setting up contracts on both the supplier and
end-user sides to maximize profits while maintaining a minimum operational cost
of distribution system. The proposed two-level optimization models can minimize
the cost of distribution system with Distributed Generation and maximize the
profits of retailers. The numerical simulations are carried out based on an
IEEE 33-bus test distribution network. Test results are included to show the
performance of the proposed method.
