Yes, the utility has full control over the registered load in direct load control demand response program. Also, the consumer has some control to his/her own load. However, the consumer can not over write the utility control. 

That is one of the reasons why consumers think direct load control is annoying to the fact that their everyday load profiles are decided by grid operators. In Europe there are pleanty of pilots focussing on interactive load control. Where consumer is the decision maker. Once the grid is subjected to stress due to wong generation forecast, a short term signal is sent to the consumer. There are new startups working on such business cases.

Dear Ahmad

Registered loads include, typically, pool pumps, air conditioners and electric hot water systems. And yes, the utility has full control over these loads. Instead, the consumers are awarded by a way of financial incentive such as recurring annual payment. The consumer may control the local registered loads in a way that the critical peak is not increased, e.g. the consumer may turn off and/or turn down an air-conditioner which is registered in DLC program. Likewise, as Labib said, the consumer control cannot over write the utility control.

http://www.brattle.com/system/publications/pdfs/000/004/465/original/Direct_Load_Control_of_Residential_Air_Conditioners_in_Texas_Faruqui_PUCT_Oct_25_2012.pdf?1378772107

http://www.elp.com/articles/2011/06/demand-response-load-management-and-direct-load-control-programs-a-review-of-utility-activities-plans-as-of-q3-2010.html