This paper presents the analysis of load frequency control (LFC) of a deregulated two-area hydro-thermal power system using fuzzy logic controller, with doubly fed induction generators (DFIGs) integrated into both the control areas. The deregulation of power sector has led to the formation of new companies for generation, transmission and distribution of power. The conventional two-area power system is modified to study the effects of the bilateral contracts of companies on the system dynamics. Deregulation creates highly competitive and distributed control environment, and the LFC becomes even more challenging when wind generators are also integrated into the system. The overall inertia of the system reduces, as the wind unit does not provide inertia and isolates from the grid during disturbances. The DFIGs integrated provide inertial support to the system through modified inertial control scheme, and arrests the initial fall in frequency after disturbance. The inertial control responds to frequency deviations, which takes out the kinetic energy of the wind turbine for improving the frequency response of the system. To enhance the participation of the doubly fed induction generator (DFIG) in the frequency control, optimal values of the speed control parameters of the DFIG-based wind turbine have been obtained using integral square error (ISE) technique. The dynamics of the system have been obtained for a small load perturbation, and for contract violation using fuzzy controller.