The increasing penetration of renewable energy sources in power grids highlights the role of battery energy stor- age systems (BESSs) in enhancing the stability and reliability of electricity. A key challenge with the renewables’, specially the BESSs, integration into the power system is the lack of proper dynamic model for stability analysis. Moreover, a proper control design for the power system is a complicated issue due to its complexity and inter-connectivity. Thus, the application of decentralized control to improve the stability of a large- scale power system is inevitable, especially in distributed energy sources (DERs). This paper presents an optimal distributed hybrid control design for the interconnected systems to suppress the effects of small disturbances in the power system employing utility-scale batteries based on existing battery models. The results show that i) the smart scheduling of the batteries’ output reduces the inter-area oscillations and improves the stability of the power systems; ii) the hybrid model of the battery is more user-friendly compared to the Western electricity coordinating council (WECC) model in power system analysis.