This paper presents a network reconfiguration method for power flow optimization and, consequently, loss reduction in distribution networks with Distributed Generation (DG). The network reconfiguration problem is formulated and solved using a simple linear programming approach. Optimal configurations are determined by considering the effects of DG outputs, load variations, and various other contingences such as faults and maintenance outages. Demand Side Management actions have also been taken into account. Simulation results for test distribution network confirmed the effectiveness of the proposed method.