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The government policies and cost benefits led to the surge in penetration of Plug-in Hybrid Electric Vehicles (PHEVs) and Battery Electric Vehicles (BEVs) into both public and private sectors, challenging the electric grid's potential to maintain its stability and efficiently serve the purpose. The penetration of PHEVs brings technological advancements and environmental benefits to the traditional transportation and electrical power systems. Designing of appropriate charging methods to satisfy PHEV owners helps to improve system performance and avoid transmission and distribution system expansion. The primary objective of this thesis is to model a coordinated charging algorithm to charge maximum number of PHEVs with the existing infrastructure at a Charging Station (CS) located in residential locality. The stochastic driving patterns of PHEVs are studied and different charging strategies are developed. The Optimized charging scheme is obtained for American Electric Power utility distribution feeder modeled in OpenDSS. Further, PHEV customers are modeled into price responsive consumers capable of participating in Demand Response programs to economically charge their vehicles and render support to the stabilization of power system. Consumer behavior modeling has been done by developing extensive demand-price elasticity matrices (PEMs) which are utilized to calculate the level of demand response.