In this work, a PSCAD electromagnetic model is constructedforamicrogridcommunity.Itconsistsofthreemicrogrids networked through the medium voltage (MV) distribution system as a practical case of the distributed resource island systems of IEEE Standard 1547.4. Typical operational scenarios are then simulated for both grid connected and islanded mode of operation.Thestudyoutcomesdemonstratetheoperationalfeasibility of networked microgrids in electrical distribution systems and the effectiveness of common droop controls in facilitating energy transaction of the microgrids and maintaining voltage and frequency stabilities under normal network disturbances. This investigation is significant in that it addresses the needs and issues arising from primary controls for facilitating the energy transactions of secondary and tertiary controls in the hierarchical control strategy of networked microgrids in the MV distribution system. Future studies of the secondary and tertiary control algorithms will need to incorporate new requirements for ensuring distribution system voltage and frequency securities.