Absolutely.
I use the D-U posts to power the PM-1 PowerMaster(s), and use the CAB-1 for conventional control. You will need a PowerMaster for each power district if you are running more than 1 train at a time - think of each PM-1 as another transformer handle.
The KW puts out just about 7 amps, or roughly equivalent to the original PH-1 135 PowerHouse, so consider this as you add more track & trains.