Thermostatically controlled loads (TCLs) such as refrigerators and air conditioners are natural candidates for short term demand response. In this paper we quantify the value associated with the TCLs' ability to provide system security and transmission constraint management services. The analysis builds on recent results that enable the aggregate control of TCLs as a leaky storage unit. We incorporate this model in a security constrained economic dispatch (SCED) that minimizes the system operational cost of a two bus-bar system, subject to frequency response and transmission constraints. Further sensitivity studies assess the impact of different penetration levels of controllable loads and transmission flow constraints.