  Under Smart Grid environment, the consumers may respond to incentive--based
smart energy tariffs for a particular consumption pattern. Demand Response (DR)
is a portfolio of signaling schemes from the utility to the consumers for load
shifting/shedding with a given deadline. The signaling schemes include
Time--of--Use (ToU) pricing, Maximum Demand Limit (MDL) signals etc. This paper
proposes a DR algorithm which schedules the operation of home appliances/loads
through a minimization problem. The category of loads and their operational
timings in a day have been considered as the operational parameters of the
system. These operational parameters determine the dynamic priority of a load,
which is an intermediate step of this algorithm. The ToU pricing, MDL signals,
and the dynamic priority of loads are the constraints in this formulated
minimization problem, which yields an optimal schedule of operation for each
participating load within the consumer provided duration. The objective is to
flatten the daily load curve of a smart home by distributing the operation of
its appliances in possible low--price intervals without violating the MDL
constraint. This proposed algorithm is simulated in MATLAB environment against
various test cases. The obtained results are plotted to depict significant
monetary savings and flattened load curves.
