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The dynamic economic dispatch (DED) is an optimization problem with an objective to determine the optimal combination of power outputs for all generating units over a certain period of time in order to minimize the total fuel cost while satisfying dynamic operational constraints and load demand in each interval. Social foraging behavior of Escherichia coli bacteria has been explored to develop a novel algorithm for distributed optimization and control. The bacterial foraging optimization algorithm (BFOA) is currently gaining popularity in the community of researchers, for its effectiveness in solving certain difficult real-world optimization problems. This article comes up with a hybrid approach involving particle swarm optimization with differentially perturbed velocity (PSO-DV) and BFOA algorithm for solving the DED problem of generating units considering valve-point effects. The new method is shown to be statistically significantly better on two test systems consisting of five and ten generating units. The results obtained through the proposed method are compared with those reported in the literature.