This paper attempts to develop a linearized model of load frequency control (LFC) for an interconnected reheat type two-area thermal power system under deregulated environment. A conventional Integral controller is optimized using ISE optimization technique. A comparison between a conventional optimized integral controller and a fuzzy logic based controller is presented and the proposed fuzzy based controller is shown to generate the improved dynamic response following a step load change with combination of poolco and bilateral contracts in deregulated environment. In addition, performance of conventional integral controller and a fuzzy logic based controller is also examined under various changes up to ±30% in system parameters.
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