Recent years have witnessed steady sales increase of electric and plug-in electric vehicles. Stringent government regulations alongside persistent pressure from environmental groups will further increase the demand and sales of such vehicles. This trend might put pressure on the grid and local power distribution circuits and transformers. A sudden increase in power consumption, mainly caused by people charging their vehicles at the same time, and during the already peak load on the utility, may cause problems. These problems are mainly caused by the heavy demand on the local voltage transformers and the power sources. Power generation and distribution utilities may need to incur significant cost increases if this problem is not handled appropriately. In this paper, we present a novel design and implementation logic for a smart grid system that allows for dynamic interaction between electric/plug-in electric vehicles and the power grid. This smart and dynamic interaction will allow for safe and semi-stable load on the grid and thus minimizing the cost and preventing damage caused by the excessive loads. The complete system design is presented in this paper with emphasis on the developed algorithms. It has been implemented and tested on the Chrysler's PEV RAM 1500 US Department of Energy pickup trucks.

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