A method for providing automatic generation control (AGC) services comprises: allocating at least one generator resource and at least one load resource to provide AGC services; and responding to at least part of an AGC services request using the load resource such that the generation resource responds to the rest of the AGC services request by operating at an operating set point that is more efficient than a set point required for the generation resource to respond fully to the AGC services request. The step of responding can comprise executing a cost function that compares costs of using the load and generation resources to respond to the AGC services request at different load and generation set points and selecting a combination of load and generation set points that meets a cost effectiveness threshold.
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