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This paper investigates the operation and protection issues on a distribution system with high penetration of residential PV systems. PV systems are smaller scale resources and therefore they have different impact on a distribution circuit than larger scale resources. The paper indeed considers a typical residential feeder and investigates PV system impacts on the system at different penetration levels. Simulations on this system show that the even the high penetration level PV systems can be accommodated as the impact on the system will not be severe.