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This paper presents an inverter-interfaced distributed generation (DG) device, dubbed the premium power supply (PPS), which is designed to provide reliable electric power, and to improve power quality. This paper proposes an effective configuration for the PPS, using inverters, an inter-tie breaker, and a small generating unit. When the DGs are operated in parallel with the utility systems, some problems occur due to interconnections on such categories as reverse power flow and island protection. This paper advances both an operating strategy and a control scheme for the PPS, with respect to the interconnection standard, IEEE Standard 1547. Simulation results demonstrate the efficacy of the PPS.