Numerous mathematical optimization methods have been used to obtain the opt
imal solution to the problem of distribution system planning, which often a
re time consuming and only restricted to small size distribution systems. I
n this paper. a novel heuristic method is developed to solve the problem of
distribution system planning. The method is composed of three steps. First
of all. an initial redundant network is formed by combining the existing n
etwork and tile probable new additions. A new efficient two-stage load flow
method is presented and integrated Into a recursive process to determine t
he optimal combination of substations and derive their service areas. Secon
dly, a heuristic approach is used to obtain the radial network configuratio
n of each substation. Finally, an algorithm. based on, branch exchange tech
nique is implemented between elements of adjacent distribution zones to obt
ain the final planning scheme. A distribution. system with 6 substations an
d 98 feeders is studied. which demonstrates the feasibility and efficiency
of the proposed method.