As more and more utilities embark on direct-load-control (DLC) programs, a question which often arises is: "How should DLC strategies be coordinated with the internal system dispatch to minimize the system production costs?" This paper presents a methodology which can be used by power system dispatchers to coordinate DLC strategies and evaluate their impacts on the system generation schedule and production costs. A sample parametric study performed for the City of Lakeland is described to illustrate practical applications.