PG&E conducted a smart grid pilot project to test volt VAR optimization (VVO) technology on distribution circuits. The objectives were to enhance grid monitoring and control, achieve grid efficiencies from conservation voltage reduction, and accommodate growing distributed generation. Two VVO vendors were tested both in a lab and in field trials on 14 feeders. Preliminary results found energy savings of 0.1-2.2% depending on the season. Lessons learned included the need to address reverse power flows from high distributed generation and properly screen feeders for existing voltage issues. Future work involves exploring the value of controlling smart inverters through VVO and conducting additional field trials.