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Vehicle-to-grid (V2G) describes a system where electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV) can connect to the electric grid an participate in markets managed by grid system operators. This paper evaluates the opportunities for V2G-enabled EVs and PHEVs to realize revenues from the regulation market that offset operating costs, making them more cost competitive with conventional vehicles. We built a ten-year net cash flow model for a fleet of delivery trucks to assess the costs and benefits of adopting this technology. To project potential V2G revenue, we modified and adapted a simulation model developed by a grid system operator. Based on exploration of numerous scenarios we determined which combination of factors produced the lowest total cost of ownership. Additionally, we conducted sensitivity analysis on battery size. Our results indicate that EV and PHEV fleets offer lower operating expenses for urban pickup and delivery services than internal combustion engine vehicles (ICE). In addition, fleet managers can expect to offset 5-11% of the total cost of ownership with V2G revenue.