Recently, the distributed generator (DG) has been successfully studied and applied in distribution system at many countries around the world. Many planning models of the DG integrated distribution system have been proposed. These models can choose the optimization locations, capacities and technologies of DG with the objective function minimizing power loss, investment costs or total life cycle costs of the investment project. However, capacity of DG that uses renewable energy resources is natural variability according to primary energy. This study proposed a planning model of optimized distribution system that integrates DG in the competitive electricity market. Model can determine equipment sizing and timeframe requiring for upgrading equipment of distribution system as well as select DG technologies with power variable constraints of DG. The objective function is minimizing total life cycle cost of the investment project. The proposed model is calculated and tested for a 48-bus radial distribution system in the GAMS programming language