The consumers try to obtain their electricity
demand at minimum cost from different resources in restructured electricity markets. Hence more attention have been
made on demand response programs (DRP) which aims
to electricity price reduction, transmission lines congestion
solution, security intensification and improvement of market liquidity and customer load benefit. This paper develops a stochastic energy procurement model for large consumer with multiple options including distributed generations, bilateral contracts and pool market purchase considering DRP. Pool market price uncertainty is modeled based
on scenario distribution curve approach such as normal distribution curve. The curve is divided into several areas, each
area identified as a scenario, and the problem is solved using
stochastic programming. Also, this paper is focused to study
the effect of DRP on total expected procurement cost has
been discussed in all scenarios. Actually a new stochastic
framework using demand response program is presented for
large consumer expected procurement cost reduction.