The purpose of this research is to identify the need of Smart Grid Technologies in communication between industrial plants with co-generation capability and the electric utilities in providing the most optimum scheme for buying and selling of electricity in such a way that the fuel consumption is minimized, reliability is increased, and time to restore the system is reduced. A typical industrial plant load profile based on statistical mean and variance of industrial plants' load requirement is developed, and used in determining the minimum cost of producing the next megawatt-hours by a typical electric utility. The 24-hour load profile and optimal power flow program are used to simulate the IEEE 39 Bus Test System. The methodology for the use of smart grid technology in fuel saving is documented in the thesis. The results obtained from this research shall be extended to include several industrial plants served by electric utilities in future work by the UNO research team.