Nowadays, the restructuring of power systems is extremely urgent due to the depletion of fossil fuels on the one hand and the environmental impact on the other. In the restructured environment, the incorporation of renewable energy sources and storage devices is key as they have helped achieve a milestone in the form of microgrid technology. As the restructuring of the power system increases, there are several types of generation sources, and distribution companies express their interest in trading in a deregulated environment to operate economically. When considering the power system deregulation, the contract value deviates in some situations, resulting in an imbalance between the generation and the energy consumption, which can bring the system into a power outage condition. In particular, load frequency control has been a great challenge over the past few decades to ensure the stable operation of power systems. This study considers two generation sources: mini-hydro in GENCO-1 and 3 and microgrid (combination of wind, fuel cell, battery storage, and diesel engine) in GENCO-2 and 4. It is two equal-area networks; in area-1, GENCO-1 and 2, and in area-2, GENCO-3 and 4 are considered, respectively. In addition, a FOPID controller and two ancillary devices, such as a unified power flow controller and a superconducting magnetic energy storage system, have been incorporated. Three different test networks have been formed according to the contract value, such as unilateral, bilateral, and agreement violations. The simulation results show that ancillary devices and controller participation significantly enhance the system response by reducing the frequency and tie-line power fluctuation. To validate the efficacy of the proposed method, respective performance indices and percentages of improvement have been obtained. Finally, this study demonstrated the effectiveness of the proposed restructured power system in a deregulated environment.