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This paper presents an optimal cascaded three degree of freedom proportional integral (3DOF PI) controller and compares its performance with conventional proportional integral (PI) controller for load frequency control of two area deregulated power system. The 3DOF PI controller enhances the degree of freedom and gives better dynamic response. Genetic algorithm (GA) is used to get the optimal gains of the proposed controllers. In the considered two area thermal-gas-fuel cell system, the thermal system consists of a reheat turbine with appropriate generation rate constraint non linearity. Battery storage and unified power flow controller (UPFC) are also assumed to be present. The performance of the proposed controllers is evaluated under different operating conditions that take place in deregulated power market. To tackle any contract violation this article emphasizes on the ancillary services provided by electric vehicles (EVs) and distributed generations. A robustness analysis is also presented by varying parameters from their nominal values. [ABSTRACT FROM AUTHOR]