In this mode of operation, it is assumed that the LDC incorporates a peak demand constraint within its DOPF program and the controllable/dispatchable component of the load (α1) is a variable which is optimally scheduled by the DOPF for customers. The objective functions considered here, minimization of J1 and J2, are from the LDC’s perspective and are discussed in (21) and (23), while the third objective of minimization of J3 is from the customers’ perspective (24), as discussed earlier. The three-phase distribution feeder and its components (1)–(7), network equations (9) and (20), and the constant energy model given by (16)–(19) are the constraints of the DOPF in this scenario. Additional operating constraints include limits on tap operation, capacitor switching, voltage and feeder current limits as discussed in (25)–(28). Note that no direct interruptible component is assumed in these controllable loads, and hence the issue of cold load pick-up or load recovery characteristics is not considered in the models used. It should be noted that price elasticity matrices can also be used to determine the lateral movement of loads across time in response to prices; however, these models are not implemented in this paper, since a constant energy model is proposed instead to determine optimal load shifting. In this context, the controllable loads become variables to optimally compute their lateral shifting subject to grid constraints; hence, price elasticity matrix models would effectively be variables which would be determined simultaneously (and optimally) from the model, based on the energy price and grid conditions.