The introduction of plug-in hybrid electric vehicles (PHEVs) is expected to have a significant impact on regional power systems and pollutant emissions. This paper analyzes the effects of various penetrations of PHEVs on the marginal fuel dispatch of coal, natural gas and oil, and on pollutant emissions of CO2, NO x , SO2 in the New York Metropolitan Area for two battery charging scenarios in a typical summer and winter day. A model of the AC transmission network of the Northeast Power Coordinating Council (NPCC) region with 693 generators is used to realistically incorporate network constraints into an economic dispatch model. A data-based transportation model of approximately 1 million commuters in NYMA is used to determine battery charging pattern. Results show that for all penetrations of PHEVs network-constrained economic dispatch of generation is significantly more realistic than unconstrained cases. Coal, natural gas and oil units are on the margin in the winter, and only natural gas and oil units are on the margin in the summer. Hourly changes in emissions from transportation and power production are dominated by vehicular activity with significant overall emissions reductions for CO2 and NO x , and a slight increase for SO2. Nighttime regulated charging produces less overall emissions than unregulated charging from when vehicles arrive home for the summer and vice versa for the winter. As PHEVs are poised to link the power and transportation sectors, data-based models combining network constraints and economic dispatch have been shown to improve understanding and facilitate control of this link.