ABSTRACTFor improving the safe operation of a power distribution grid, it is extremely important to maintain a large stability margin and to operate economically. As an integral part of safe operation, reasonable network reconfiguration is helpful to establish the main grid and restore loads quickly. Based on the fuzzy C-means clustering method (FCM), the distribution grid reconfiguration is studied in this paper. The power system static stability margin and economy are also considered. If the system grid fails, then the faulty branch should be cut off quickly. So it is necessary to select the appropriate branch to replace the faulty branch. Firstly, the FCM is applied to classify candidate branches; in the process of classification, the maximal stability margin line is considered as the most suitable candidate branch. Secondly, the system loss and the grid economy are considered. The optimization model for judging the economy of the branch is given. By using the method given, the biggest stability margin and the most economic branch are chosen as the alternative branch in the interest of completing the grid reconfiguration. At the same time, the correctness and effectiveness is validated by the application of IEEE 33 nodes distribution grid system.