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The introduction of remotely controlled network devices is transforming the way the power system is operated and studied. The ability to provide real and reactive power support can be achieved at the end-user level. In this paper, a framework and algorithm to coordinate this type of end-user control is presented. The algorithm is based on a layered architecture that would follow a chain of command from the top layer (transmission grid) to the bottom layer (distribution grid). At the distribution grid layer, certain local problems can be solved without the intervention of the top layers. A reactive load control optimization algorithm to improve the voltage profile in distribution grid is presented. The framework presented in this paper integrates agent-based technologies to manage the data and control actions required to operate this type of architecture.