This paper proposes a coordinated distribution system reconfiguration and planning model to deal with the problem of active distribution expansion planning. DR (Demand response) programs are modeled as virtual distributed resources to cover the effect of uncertain parameters. A bi-level optimization procedure is developed to solve the proposed model. At the first level, an optimization problem is solved using PSO (particle swarm optimization) algorithm to determine the system expansion and reconfiguration plans. Next, the second level minimization problem is developed based on the sensitivity analysis. The DR programs are taken into account in the second level problem to encounter with the problem uncertainties. Therefore, the proposed model incorporates the problem of DSR (distribution system reconfiguration) with system expansion problem, while the presence of DR is considered to enhance the effectiveness of the problem. The IEEE 33-bus standard test system is utilized to investigate the performance of the proposed model. The simulation results approve the. advantages of the proposed model and its economical profits for distribution network owners. (C) 2015 Elsevier Ltd. All rights reserved.