The paper focuses on presenting a proposed framework to effectively integrate the aggregated battery vehicles into the grid as distributed energy resources to act as controllable loads to levelize the demand on the system during off-peak conditions and as a generation/storage device during the day to provide capacity and energy services to the grid. The paper also presents practical approaches for two key implementation steps - computer/communication/control network and incentive program. (C) 2009 Elsevier Ltd. All rights reserved.