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The end of life cycle of batteries used in electric and hybrid electric vehicles may have great potential for further use in the electrical power system for energy storage. However, the phenomenon known as battery aging must be considered before the repurposing of these batteries. This phenomenon affects the batteries' ability to maintain their nominal capacity, voltage and current rating. This paper examines an approach for repurposing used electric and hybrid electric vehicle batteries for large scale energy storage of renewable energy in the electric power system. In addition, this paper describes a system that utilizes pulsed charge regulation and interlacing of batteries to form a multi-level battery scheme to extend the useful life of batteries. This concept was demonstrated in a physical model of the system that was developed with PSCAD.