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Plug-in hybrid electric vehicles (PHEVs) potentially have the capability to fulfill the energy storage needs of the electric grid by supplying ancillary services such as reactive power compensation, voltage regulation, and peak shaving. However, in order to allow bidirectional power transfer, the PHEV battery charger should be designed to manage such capability. While many different battery chargers have been available since the inception of the first electric vehicles (EVs), on-board, conductive chargers with bidirectional power transfer capability have recently drawn attention due to their inherent advantages in charging accessibility, ease of use, and efficiency. In this paper, a reactive power compensation case study using just the inverter dc-link capacitor is evaluated when a PHEV battery is under charging operation. Finally, the impact of providing these services on the batteries is also explained.