This document presents a utility connected microgrid based distribution generation system for power flow management. It proposes using back-to-back converters to control power flow between the utility and microgrid, allowing for specified amounts of real and reactive power sharing. The objectives are to improve power sharing techniques, power management reliability, and load frequency control of the microgrid. The system provides isolation between the utility and microgrid grids for both voltage and frequency fluctuations. It aims to achieve stable grid operation, improved power quality, and economical based microgrid operation.