The benefits of integrating Distributed Energy Resources (DER) into the U.S. electric power system are well documented. Unfortunately, electric utilities view DER as potentially disruptive to existing grid protection systems, and the increased use of DER would be hampered by the centralized control infrastructure currently in place. A new control and communication approach is needed for the full benefits of DER to be realized. Intelligent software agents could provide the needed communications, controls, and prognostics/diagnostics. However, to gain acceptance in the electric industry, intelligent agents must be shown to be stable and capable of responding to common system disturbances. This project will lay the groundwork for a hierarchy of intelligent power system agents that will enable DER to be more fully integrated into the U.S. power system. Feasibility will be demonstrated by developing and testing DER agents that respond to DER level disturbances, thereby facilitating acceptance within the power industry. Phase I will develop the high level requirements for a basic hierarchy of intelligent agents to coordinate the operation of the electric grid system by communicating and collaborating with one another. The DER level agents, operating at the bottom-most level of the hierarchy, will be further specified and minimal agents will be developed and tested. Commercial Applications and Other Benefits as described by awardee: Intelligent software agents could be utilized in a variety of applications throughout the energy industry. Agents operating within the distribution and transmission systems could minimize the risk of terrorist attack