In operation of distribution system, $DG_s$ Distributed Generations) are installed as an alternative of extension and establishment of substations and transmission and distribution lines according to increasing power demand. In operation planning of $DG_s$, determining optimal capacity and allocation gets economical pro(it and improves power reliability. This paper proposes determining a optimal number, size and allocation of $DG_s$ needed to minimize operation cost of distribution system. Capacity of $DG_s$ (or economical operation of distribution system estimated by the load growth and line capacity during operation planning duration, DG allocations are determined to minimize total cost with power buying cost. operation cost of DG, loss cost and outage cost using GA(Genetic Algorithm).