A power conversion system includes a hybrid power converter phase unit including three voltage inputs, a voltage output, a pair of outer switches between the voltage inputs and voltage output, and a pair of inner switches between the voltage inputs and the outer switches. The power conversion system includes a controller in electrical communication with the inner and outer switches. The controller is configured to selectively disable or enable the inner switches by switching the inner switches OFF or ON. A method includes selectively disabling or enabling inner switches in a hybrid power converter phase unit with a controller such that the hybrid power converter phase unit is a 3-level converter when the inner switches are ON and enabled in a 3-level mode and a 2-level converter when the inner switches are OFF and disabled in a 2-level mode.