This chapter presents a generalized day-ahead combined dynamic economic emission dispatch (DEED) problem incorporating demand response (DR) strategy for power system networks with mutual communication between electricity customers and power utility. A nonconvex mixed binary integer programming technique is used to solve the demand response optimization problem. Fixed and flexible home appliances connected as load to the power system network are considered in the demand response strategy. The optimization of the DEED problem is done using particle swarm optimization (PSO) technique. The proposed PSO algorithm takes into account thermal power generation unit ramp rates and their power generation constraints.