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Network reconfiguration of an electrical distribution system is an operation to alter the topological structure of distribution system by changing status (open/closed) of sectionalizing and tie switches. By transferring loads from the heavily loaded feeders to the relatively lightly loaded feeders, the network reconfiguration can balance feeder loads and eliminate overload conditions. The system load-balancing index (LBI) is used to determine the loading conditions of the system and maximum system loading capacity. The index value has to be minimum in the optimal network reconfiguration of load balancing. This paper presents a new approach for optimal network reconfiguration of a distribution system using genetic algorithm to determine the optimal network reconfiguration. The switches are taken into consideration for crossover process. After obtaining number of solutions from the combinational analysis, the optimal solution is selected based on the fitness function, i.e., the solution having the minimum index value. The proposed approach is tested on IEEE 16 bus system.