Customers, utilities, and society can gain many benefits from distributed energy resources (DERs), including plug-in hybrid electric vehicles (PHEV5). Using battery on PHEV to arbitrage electricity price is one of the potential benefits to PHEV owners. There is, however, disagreement on the magnitude of such profit. This study uses a stochastic optimization model to estimate the potential profit from electricity price arbitrage of two types of PHEVs (PHEV-10, and PHEV-40) under three scenarios with variant electricity tariff and PHEV owners over a five-year period. The simulation results indicate that under current market structure, even with significant improvement in battery technologies (e.g., higher efficiency, lower cost), the PHEV owners can't achieve a positive arbitrage profit. This finding implies that expected arbitrage profit solely is not a viable option to engage PHEVs larger adoption. Subsidy and combining PHEV arbitraging with alternative PHEV services are required. (C) 2016 Elsevier Ltd. All rights reserved.