Advancement in communication technology and its application to power systems have introduced a new era in power system scheduling. Demand Side Management (DSM) is one of the main outcomes of this combination. In this paper, a droop-based hierarchical control strategy has been proposed to execute automatic Demand Dispatch (DD). When the frequency of the system falls/rises below/above rated level, Balancing Authority (BA) issues droop-based signal to the aggregators to check the feasibility and availability of DD according to the capability of aggregated loads. Then, these signals will be sent to the Appliance Management Unit (AMU). According to the availability, priority, and features of appliances, the AMU sends these commands in form of deferral or interruptible signals to appliances. At the time of DD events, the proposed AMU algorithm keeps the total household power consumption within the required limit to maintain the system frequency at nominal level. A wide variety of residential loads has been considered in the DD applications. It will be demonstrated that the proposed AMU algorithm is capable of maintaining the total demand of a house below the limit determined by the BA. In the second part of this paper, the necessity of renewable energy resources and battery storage system to prevent load rebound is highlighted.