  Recent work has suggested reducing electricity generation cost by cutting the
peak to average ratio (PAR) without reducing the total amount of the loads.
However, most of these proposals rely on consumer's willingness to act. In this
paper, we propose an approach to cut PAR explicitly from the supply side. The
resulting cut loads are then distributed among consumers by the means of a
multiunit auction which is done by an intelligent agent on behalf of the
consumer. This approach is also in line with the future vision of the smart
grid to have the demand side matched with the supply side. Experiments suggest
that our approach reduces overall system cost and gives benefit to both
consumers and the energy provider.
