In this paper, an algorithm to solve the profit based unit commitment problem (PBUCP) under deregulated environment has been proposed using Particle Swarm Optimization (PSO) intelligent technique to maximize the GENCOs profit. Deregulation in power sector increases the efficiency of electricity production and distribution, offer lower prices, higher quality, a secure and a more reliable product. The proposed algorithm has been developed from the view point of a generation company wishing to maximize its profit in the deregulated power and reserve markets. UC schedule depends on the market price in the deregulated market. In deregulated environment utilities are not required to meet the demand. GENCO can consider a schedule that produce less than the predicted load demand and reserve but creates maximum profit. More number of units are committed when the market price is higher. When more number of generating units are brought online more power is generated and participated in the deregulated market to get maximum profit. This paper presents a new approach of GENCOs profit based unit commitment using PSO technique in a day ahead competitive electricity markets. The profit based unit commitment problem is solved using various PSO techniques such as Chaotic PSO (CPSO), New PSO (NPSO) and Dispersed PSO (DPSO) and the results are compared. Generation, spinning reserve, non-spinning reserve, and system constraints are considered in proposed formulation. The proposed approach has been tested on IEEE-30 bus system with 6 generating units as an individual GENCO. The results obtained are quite encouraging and useful in deregulated market. The algorithm and simulation are carried out using Matlab software. © 2010 Elsevier B.V. All rights reserved.