Abstract— We present a method to design distributed generation and demand control schemes for primary frequency regulation in power networks that guarantee asymptotic stability and ensure fairness of allocation. We impose a passivity condition on net power supply variables and provide explicit steady state conditions on a general class of generation and demand control dynamics that ensure convergence of solutions to equilibria that solve an appropriately constructed network optimization problem. We discuss how various classes of dynamics used in recent studies fit within our framework and show that, in some cases, this allows for less conservative stability and optimality conditions. We illustrate our results with simulations on the IEEE 68 bus system and observe that both static and dynamic demand response schemes that fit within our framework offer improved transient and steady state behavior compared with control of generation alone.