In this work the functionalities of Power Electronic Converters (PEC) used as grid interface device for distributed generation sources are extended to deal with Power Quality (PQ) issues. It is proposed an alternative strategy to obtain current references based on the Conservative Power Theory (CPT). The proposed strategy contributes to the full exploitation of the PEC power capacity, allowing the PEC to act as a multifunctional device performing simultaneously selective compensation of PQ issues and power injection into the utility grid.