The concept of installing distributed generators in a utility distribution system is gaining interest in the industry. Such distributed generators can
reduce distribution losses and improve voltage profile of the feeder if they are optimally located at the demand side of a power system. On the other hand; regarding the impacts of reactive power sources on the operation indices of distribution system, it seems that by determining the best locations and values for both active and reactive power sources simultaneously, in addition to attain the more advantages in using distributed generators, the capacities of needed reactive power sources can be reduced. In this paper, the optimization problem of determining the optimum
locations and values for distributed generators and reactive power sources is solved by the second order method and in the last part of the paper; the procedure is applied to a typical distribution network