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This paper proposes a high-performance and robust linear quadratic regulator-proportional integral derivative (LQR-PID) controller for frequency regulation in a two-area interconnected smart grid with a population of plug-in hybrid electric vehicles. Controller robustness is achieved using a linear matrix inequality approach. The proposed control framework is tested in a simulated two-area interconnected smart grid integrated with plug-in hybrid electric vehicles under load disturbances and wind power fluctuations. The performance of the proposed controller is simulated using Matlab and compared with that of a conventional linear quadratic regulator controller. Simulation results show that the proposed controller provides reliable smart grid frequency control.