  Currently, system operators implement demand response by dispatching
controllable loads for economic reasons in day-ahead scheduling. Particularly,
demand shifting from peak hours when the cost of electricity is higher to
non-peak hours to maintain system reliability by flattening the load profile.
However, the system flexibility and economic benefits of such action in
post-contingency scenarios are not explicitly considered in short-term
operations. Hence, this paper highlights the benefits of demand response as a
corrective action for potential post-contingency emergencies in day-ahead
scheduling. A security-constrained unit commitment (SCUC) model which considers
the flexibility offered through corrective demand response (CDR) to maintain
system reliability when a line or generator outage occurs is proposed. The
proposed model was tested on IEEE 24-bus system where simulation results point
to significant total cost savings in daily operations. Moreover, the results
point to better long-term reliability of generators along with the ability to
use existing system flexibility and serve higher critical demands in base-case
when CDR is implemented.
