Previously linearised plug-in electric vehicle (PEV) models are adopted in automatic generation control functioning. However, lesser attention is given towards the exact designing of a PEV unit contemplating the suitable model parameters. Therefore, this paper presents a novel approach for determining the PEV model parameters employing a Bode plot analysis in the primary frequency control operation. Furthermore, a novel proportional–integral internal proportional-derivative feedback controller is proposed for the secondary frequency control application asserting zero frequency and tie-line power deviations under steady-state condition. The proposed controller provides better dynamic stability compared to the existing controllers by adjusting open loop poles of the system. The moth flame optimisation technique is used to tune the gain parameters of the proposed controller. Simulation results, obtained from the case studies under different power scenarios, depict a significant improvement in the dynamic responses of frequency and tie-line power deviations in the presence of the proposed PEV model and optimised controller.