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This paper proposes a new integrated model for solving the distribution system planning (DSP) problem by implementing distributed generation (DG) as an attractive option in distribution utilities territories. The proposed model integrates a comprehensive optimization model and planner's experience to achieve optimal sizing and siting of distributed generation. This model aims to minimize DG's investment and operating costs, total payments toward compensating for system losses along the planning period, as well as different costs according to the available alternative scenarios. These scenarios vary from expanding of an existing substation and adding new feeders to purchasing power from an existing intertie to meet the load demand growth. Binary decision variables are employed in the proposed optimization model to provide accurate planning decisions. The present worth analysis of different scenarios is carried out to estimate the feasibility of introducing DG as a key element in solving the DSP problem.