Transmission Expansion Planning (TEP) involves determining if and how transmission lines should be added to the power grid so that the operational and investment costs are minimized. TEP is a major issue in smart grid development, where demand response resources affect short-and long-term power system decisions, and these in turn, affect TEP. First, this paper discusses the effects of demand response programs on reducing the final costs of a system in TEP. Then, the TEP problem is solved using a Teaching Learning Based Optimization (TLBO) algorithm taking into consideration power generation costs, power loss, and line construction costs. Simulation results show the optimal effect of demand response programs on postponing the additional cost of investments for supplying peak load.