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Plug-in Electric Drive Vehicles (EDVs) are becoming increasingly popular and a number of auto manufacturers are planning on introducing pure Battery Electric Vehicles (BEVs) or plug-in hybrids within the next two years. When parked and plugged into the electricity grid, these EDVs can be used as a large distributed battery that can be used to regulate electric power on the grid—a concept known as Vehicle-To-Grid power or V2G power. To effectively use these EDVs as storage resources, the grid operators require a certain minimum power capacity, which cannot be provided by an individual vehicle. Hence, a group of EDVs need to come together and form a coalition that can provide the required capacity to the grid. In this paper, we formally model the coalition formation problem for EDVs and discuss some interesting open research questions that this problem poses—for example, how much capacity can a coalition of EDVs report to the grid operators, which vehicles within the coalition should be used to service the power requests, and how can the money be fairly distributed amongst the coalition participants? We then describe some algorithms that address these questions and present an empirical evaluation of our algorithms based on real-world power regulation data.