The paper applies the advanced multi‐pass dynamic programming (AMPDP) to solve the weekly hydrothermal generation coordination problem with direct load control (DLC) operation. The AMPDP technique can overcome the long calculation time and large data storage problems that the conventional dynamic programming (DP) method fails to resolve for large power systems and long scheduling period. The algorithm developed in this paper finds the optimal hydrothermal coordinated generation schedule of a power system that includes 48 thermal units and 8 hydro units with direct load control during a 192 hour study period. For the energy payback phenomenon of direct load control of air conditioner, the simulation of various energy payback patterns and various controllable capacities are presented in this paper.