The better distribution reliability usually needs higher cost and it will lead to a higher electricity price. It’s a critical problem for a power company to make decision between reliability enhancement and power rate. How to improve the reliability in an efficient cost under limited resources is an important issue on distribution network planning. This thesis analyses the relationship between reliability levels and construction cost of common power distribution feeders in Taiwan, and finds out the alternative feeder types for different regions by simulating the interruption costs of customers in different areas and construction cost of feeders based on value-based distribution system reliability planning methodology. Furthermore, this thesis also analyses the impact on system reliability for the capacity and location of distributed energy resources when it is installed in distribution system.