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In Part I of this two-part paper, we introduce several possible methods for integrating wind power, price-responsive demand and other distributed energy resources (DERs). These methods differ with respect to information exchange requirements, computational complexity, and physical implementability. A novel look-ahead interactive dispatch that internalizes inter-temporal constraints at the DERs level, and dispatches the results of distributed decisions subject to spatial security constraints, is proposed as a possible effective algorithm. This method requires only the use of today's static security-constrained economic dispatch (SCED) by the system operators. The optimization accounting for inter-temporal constraints, and ramping rates in particular, is done by the DERs while they create their own supply and demand functions. To implement this method, today's supervisory control and data acquisition (SCADA) needs to be transformed into a multi-directional, multi-layered information exchange system.