It is necessary for the Power load operators and regulators to manage distribution services efficiently to maintain reliability of the power system. Frequency regulation is one of the distribution services to be supplied by the electricity market participants. The only way to regulate frequency is to maintain the balance between demand and supply in real time. In India, it is achieved through a regulatory approach. In this Paper, an investigation is made on Free Governor Mode of Operation to demonstrate Frequency Regulation by adopting Free Governor Mode of Operation. Simulation is a powerful technique used to predict the performance or analyze the behaviour of any closed loop control system. It is also used to tune the controller gains or to design a control system. Development of mathematical model is the first step in the simulation study. Matlab and Simulink of Mathworks Inc. are widely used in the academic and industrial world. A simple model of a speed governing system of the steam turbine is taken for illustrating the dynamic simulation.