With large scale integration of intermittent renewable energy such as wind and solar, it is becominga challenge to maintain the power balance by purely dispatching generation. Demand-side resourcesshould be utilized to (1) avoid the prohibitive investment in backup generation and (2) dance with inter-mittent renewable generation. To reap the potential benefits from the demand side, we propose a newframework termed integrated dispatch of generation and load (IDGL). In IDGL, the load adjustment cost(LAC) is introduced to express the willingness of customers to change their consumption levels. A for-mulation of IDGL is proposed in which the customer responses, such as load shifting and consumptionmode switching, can be explicitly modeled. We also present a new settlement mechanism in which theload adjustment costs of responsive customers are paid by non-responsive customers. The advantage ofthis mechanism is that customers are guided to bid according to their real LACs. Case studies based onthe IEEE 30-bus system and a real-world power system in China demonstrate the effectiveness and theeconomic benefits of IDGL.