As depicted in Fig. 4, under ideal conditions, demand re- sponse, storage, and electric vehicles will be closely coordinated with all other resources such that the net load profile would be nearly flat. This implies that the grid would be operated closer to near-peak load conditions most of the time. Initially, the flattened profile tends to improve reliability by decreasing the peak. However, over time, as the “flattened” load grows, forces of optimal asset utilization will push the system closer to the “edge” more often and thus make it more susceptible to failure; hence, the need for a “smart grid” solution from a reli- ability perspective.