This paper describes a new feeder reconfiguration algorithm for the pu
rpose of reducing the operating cost in the real-rime operation enviro
nment. The methodology developed is a heuristic based approach. It emp
hasizes on minimizing the cost of operation over a specified time peri
od rather than a fixed operating point. The practical operating concer
ns of feeder reconfiguration and the coordination with other distribut
ion automation applications are also addressed. The developed algorith
m has been implemented as a production grade software. Test results on
PG&E distribution feeders show that the performance of this software
is efficient and robust.