  This two-part paper considers the day-ahead operational planning problem of a
radial distribution network hosting Distributed Energy Resources (DERs), such
as Solar Photovoltaic (PV) and Electric Vehicles (EVs). In Part I, we develop a
novel AC Optimal Power Flow (OPF) model that estimates dynamic Distribution
nodal Location Marginal Costs (DLMCs) of real and reactive power including
transformer degradation. These all-inclusive DLMCs are key in the
co-optimization of the distribution network and DER schedules. Part II
discusses the implication of using DLMCs to represent the benefit of shifting
real/reactive power across time and achieve optimal Distribution Network and
DER operation. Moreover, it evaluates, elaborates and analyzes the novel AC OPF
through extensive numerical results of actual distribution feeder-based case
studies involving a wealth of future EV and PV adoption scenarios. Optimal
schedules are compared to schedules that rely on apparently reasonable
approaches, namely Business as Usual (i.e., do nothing), Time of Use, and
traditional line loss minimization. The overwhelming evidence of extensive
numerical results supports the significant benefits of internalizing short-run
marginal asset - primarily transformer - degradation. Apart from optimal
short-run scheduling, the proposed approach can harvest otherwise idle DER
(PV/EV) reactive power compensation capabilities, increase distribution network
DER (PV/EV) hosting capacity, and mitigate investments in distribution
infrastructure that would be otherwise required to support distribution
utilities' obligation to serve. Finally, numerical evidence on the benefits of
AC OPF modeling intertemporal transformer life degradation suggests that it may
be worth considering the introduction of intra-day markets.
