SUMMARYThe authors have proposed a new concept of a distribution system "Flexible, Reliable and Intelligent ENergy Delivery System (FRIENDS)" with intent to solve imminent operating problems faced by utilities in providing their customers with reliable supply of power at several levels of quality. The main idea of FRIENDS is to introduce new facilities, so-called Quality Control Centers (QCCs), which are installed very close to the customers for the purpose of implementing multiple functions, such as Customized Power Quality Service. In addition, these QCCs form a network for energy and information transmission at a level below distribution substations. QCCs make it possible to frequently change configuration of the network depending on the system and load conditions. These frequent reconfigurations of the network require fast and reliable Transfer Switching in the QCCs to ease an effect on customers. The reconfiguration for the purpose of fault area isolation also requires a fast Fault Detection feature. This paper presents a new method for controlling Transfer Switching and a method of Fault Detection in order to realize a fast and reliable reconfiguration of QCC network in a normal state, as well as under fault conditions. This paper also analyzes the methods in terms of instantaneous values calculated by PSCAD/EMTDC.