This paper present the analysis of load frequency control (LFC) of a two area hydro–thermal power system using Genetic Algorithm (GA) based PID controller along with Capacitive Energy storage (CES) added its both the control area in the presence of generation rate constraints under deregulated environment. The optimal values of integral gains without and with CES units are obtained using GA by minimizing an objective function which is quadratic in the deviation terms. It has been observed from the analysis that, inclusion of CES, the dynamic performance of LFC has been improved significantly. since the oscillations in the area frequencies and tie-line power deviations have been damped out in the presence of CES under open access scenario. © Research India Publications.