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A smart grid is an electric power network that utilizes digital technology. A smart grid delivers electricity from suppliers to consumers using two-way digital communications to control appliances at consumers' homes. The objective of this study is to decrease the peak load and increase the average load of power grid to save energy, reduce costs, and increase reliability for the venders. To achieve this objective, we are proposing a mechanism for scheduling home appliances and factory processes dynamically, to shift some appliances and factory processes from peak hours to off-peak hours, and in response the user will receive incentives in the form of price reduction.