This paper first presents an optimization model to flexibly control available plug-in electric vehicle (PEV) battery charging/discharging power based on three-phase power flow and sensitivity approaches. This model can achieve one of the two goals: 1) minimizing both battery charging/discharging cost and extra battery degradation cost due to vehicle-to-grid (V2G) activities (cost-reduction strategy); 2) maximizing local peak load shifting and minimizing extra battery degradation cost due to V2G activities (peak-shifting strategy). The first strategy can determine the appropriate charging/discharging rates of an available PEV battery in order to benefit both the PEV owners and the distribution utilities for the day ahead. The second strategy can reduce the peak loads of the system. Both strategies can improve the power quality at the same time. With the help of a sensitivity method, most of the nonlinear constraints are transformed into linear constraints, and the number of constraints is reduced in the model. An interior point optimization approach is utilized to solve the optimization model. The optimization model is modified further to address unexpected PEV connections and travel scenarios during operation. The effectiveness and accuracy of the proposed method are demonstrated and verified on a 75-node test feeder.
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