Distributed generation is one of the biggest changes that the power industry is facing with the mitigation of greenhouse gases and the smart grid initiative. With the presence of a communication infrastructure, it is expected that distributed generators could be more efficiently operated. This work focuses on developing a power loss minimization technique while allowing distributed resources to supply reactive power. The proposed technique is tested using IEEE 13- and 34-node test feeders, and results show that the proposed technique will minimize real power loss in radial distribution feeders.