Programmable AC power sources have been widely used to implement and support a wide range of Test Procedure Specifications (TPS's). Traditionally, these power sources use analog control circuits to provide key control and protection functions like load regulation, current limit and frequency conversion. While this is a proven design, it suffers from a number of drawbacks. With the advent of recent advances in DSP technologies, a full digital implementation of an AC power source design supporting high switching frequencies is now feasible. This paper discussed some of the advantages derived from an all-digital implementation of a programmable poser source and the benefits this provides for ATE system use.