Abstract-For a power grid to operate properly, electrical frequency must be continuously maintained close to its nominal value. Increasing penetration of distributed generation, such as solar and wind generation, introduces fluctuations in active power while also reducing the natural inertial response of the electricity grid, creating reliability concerns. While frequency regulation has traditionally been achieved by controlling generators, the control of Demand Response resources has been recognized in recent smart grid literature as an efficient means for providing additional regulation capability. To this end, several control methodologies have been proposed recently, but various features of these proposals make their practical implementations difficult. In this paper, we propose a new control algorithm that facilitates optimal frequency regulation through direct control of both generators and Demand Response, while addressing several issues that prevent practical implementation of other proposals. In particular, i) our algorithm is ideal for control over a large, low-bandwidth network as communication and measurement is only required every 2 seconds, ii) it enables Demand Response resources to recover energy lost during system transients, and iii) it accommodates both measured disturbances and unmeasured disturbances. We demonstrate the viability of our approach through dynamic simulations on a 118-bus grid model.