The conventional system, pooling resources with large centralized power plant interconnected as a network. provides a lot of advantages compare to the isolated one include optimizing efficiency and reliability. However, such a large plant need a huge capital. In addition, more problems emerged to hinder the construction of big power plant as well as its associated transmission lines. By applying commutative law of math, ab = ba, for all a,b €-R, the problem associated with conventional system as depicted above, can be reduced. The idea of having small unit but many power plants, namely “Listrik Kerakyatan,” abbreviated as LK provides both social and environmental benefit that could be capitalized by using proper assumption. This study compares the cost and benefit of LK to those of conventional system, using simulation method to prove that LK offers alternative solution to answer many problems associated with the large system. Commutative Law of Algebra can be used as a simple mathematical model to analyze whether the LK system as an eco-friendly distributed generation can be applied to solve various problems associated with a large scale conventional system. The result of simulation shows that LK provides more value if its plants operate in less than 11 hours as peaker power plant or load follower power plant to improve load curve balance of the power system. The result of simulation indicates that the investment cost of LK plant should be optimized in order to minimize the plant investment cost. This study indicates that the benefit of economies of scale principle does not always apply to every condition, particularly if the portion of intangible cost and benefit is relatively high.