As the number of plug-in electric vehicles (PEVs) increases, so might their issues and impacts on the power system performance. Toward eliminating the negative impacts of PEVs on the power system, installation of a charging controller at customers' homes, which addresses such issues and brings convenience for customers, is fundamentally required in the smart grid era. This paper develops a novel in-home PEV charge/discharge scheduling method that employs vehicle-to-home (V2H) capability to schedule level of charging/discharging at each time slot. In doing so, a household controller minimizes customer payment cost and reliability cost. The proposed charging algorithm not only responds to time-varying tariffs but can also manage the home outage by supplying household appliances during the home load interruption. The proposed method is verified and tested with different case studies. Results show that applying the proposed method leads to significant decrement in home peak load and customer costs, i.e., payment and interruption costs.