Power distribution systems (PDS) are the infrastructure and equipment used to distribute electricity from the transmission system to end-users, such as homes and businesses. PDS are usually designed to operate in a radial mode, where power flows from one substation to the end user through a series of feeders. The extension of distribution lines to attend new customers along with the growing demand for electricity result in increased energy losses and voltage reductions. Various solutions have been proposed to solve these issues, such as selecting the optimal set of conductors, optimizing the placement of voltage regulators, using capacitor banks, reconfiguring the distribution system, and implementing distributed generation. A well-known approach for reducing energy losses and enhancing voltage profile is the optimal conductor selection (OCS). While this can be beneficial, it may not be sufficient to fully reduce technical losses and improve the system voltage profile; therefore, it must be combined with other strategies. This paper presents a new approach that combines the OCS with the optimal placement of capacitor banks (OPCB) to minimize technical losses and improve the voltage profile in PDS. The main contribution of this paper is the integration of these two problems into a single mixed integer linear programming (MILP) model, therefore guaranteeing the achievement of globally optimal solutions. Three test systems of 27, 69, and 85 buses were used to illustrate the effectiveness of the proposed modeling approach. The results indicate that the combination of OCS and OPCB effectively minimizes energy losses and enhances the voltage profile. In all cases, the solutions obtained by the proposed MILP approach were better than those previously reported through metaheuristics for the combined OCS and OPCB problem.