A novel coordinated power controller design framework is proposed to optimize the active power output of multiple generators in a distributed network. Each bus in the distributed generation systems includes two function modules: a distributed economic dispatch (DED) module and a cooperative control (CC) module. By virtue of the distributed consensus theory, a DED algorithm is proposed and utilized to calculate the optimal active power generation references for each generator. The CC module receives and tracks the active power generation references such that the generation-demand balance is guaranteed at minimum operating cost while satisfying all generation constraints. The distributed control and management strategies enhance the redundancy and the plug-and-play capability in microgrids. Optimal properties and convergence rates of the proposed distributed algorithms are strictly proved. Simulation studies further demonstrate the effectiveness of the proposed approach.