Optimum energy consumption is of utmost significance considering the costs associated with the generation, transmission, and distribution of energy. In the competitive electricity distribution market, success rests on the supply of more reliable and higher quality energy to customers. This paper studied distribution network reliability, power loss, and power quality in the presence of distributed generation (DG) resources using the CYMEDIST software application. The location of DG resources substantially determines reliability, power quality, and the amount of power loss. Thus, so as to increase reliability and decrease loss, this work used innovative approaches to allocate DG resources. To study load variations over time, use was made of a two-state version of the Marcov model: peak-load and base-load. Finally, to evaluate power quality, the amount of harmonic injection was calculated using the ITHD index. The results indicate that this approach was highly successful in increasing reliability and decreasing power loss.