A power forecasting module determines a load forecast of a distribution system (DS) and a power generation forecast of distributed energy resources (DERs) A demand response (DR) module estimates an available DR based on the load and the power generation forecast and modifies the load forecast by dispatching an optimal DR. An energy storage commitment module determines a charging/discharging schedule of energy storage devices in the system based on the modified load profile and generates a second load profile by incorporating the charging/discharging schedule of energy storage devices. An unit commitment (UC) module determines a DER schedule of supplying electrical power to the loads in the second load profile based on a first objective function. An economic dispatch (ED) module determines an optimum operating point for each DER and an Integrated Volt-VAR Control (IVVC) module controls distribution assets to maintain a voltage profile in the system.