-Transformer and feeder load balancing in a distribution system reduces the risk of overloads due to load changes.The possible out of service area following the occurrence of a fault is also reduced. However, keeping in view the life expectancy of the switches, it is desirable that the number of switching operations is kept to a minimum. A new algorithm for load balancing based on fuzzy set decision theory is presented in this paper. The decision regarding switching operations is arrived at by considering transformer and feeder load balancing together. The proposed method is illustrated through an example.