Fig. 4 presents the operational framework for the LDC with controllable loads. With the introduction of RTP or TOU tariffs, there is a possibility that customers would tend to shift their demand by scheduling their appliance usage, as much as possible, to times when the electricity prices are low. However, such demand shifts may create unwarranted new peaks in the distribution feeder. In order to alleviate this problem in the proposed framework, it is envisaged that the LDC will send control/dispatch signals to individual customers, k, while also determining optimal decisions on its feeder operating variables such as taps and capacitor switching. The loads which respond to the LDCs operating objective and can be shifted across intervals, while keeping the energy consumption of the customer constant over a day, play an important role in smoothening the system load profile. In this case, there is a need to ensure that no new peaks are created while shifting the controllable loads across intervals. Hence, the LDC defines a peak demand cap PDk for the system, considering grid constraints and operating limits at any interval, and schedules the controllable loads accordingly. The proposed DOPF, considering objective functions from the perspective of the LDC and customers, would provide the required smart operating decisions. This category of load models considers deferrable loads which cannot be interrupted but can be shifted to other hours, thus ensuring the same energy consumption from the customer over the day.