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To evaluate the interruption cost of distribution system, this paper presents an improved FMEA method to calculate reliability, and a statistical approach to gain sector custom average damage function (SCADF). A feeder is firstly divided into line blocks and load blocks according to the isolation devices. Based on these blocks, an equivalent mathematic model is introduced to sum up the elements' data. Load point indexes and system indexes can be evaluated after analyzing the failure mode effect of the distribution network. There has been a survey method for SCADF, whose result is accurate but not universal for different areas. So in this paper, an alternate method is also presented, using the product value which customer created and the electric energy which the process consumed, involving some statistics theory such as regression analysis. The related data can be available easily from the regional government bureau of statistic and the power supply corporation. At last, an actual feeder is illustrated to demonstrate the efficiency of the proposed method.