Distributed generator (DG) companies have become new stakeholders in a distribution network with widespread access of DG in the electricity market environment. During DG planning

it is an important problem demanding prompt solution for a DG company to make appropriate decisions according to its probable investment behavior. Thus

a bi-level programming model is presented that considers the different interests of the DG company and the distribution company. The model consists of an upper level for siting and sizing of DG

and a lower level for forecasts of siting and sizing of capacitors and the strategy for purchasing power. Then the relationship between DG planning and reactive capacitor planning is studied. In addition

the concept of active management fees (AMFs) is proposed

whose effects on the planning of DG and reactive capacitor and the objective of every stakeholder are analyzed. Levy flight cuckoo search (LFCS) algorithm is used to solve the above model. Numerical results show that the proposed model is able to reflect the game relationship between the two parties

and rational AMFs can promote the accommodation of DG. This work is supported by National Natural Science Foundation of China (No. 51277076) and the Fundamental Research Funds for the Central Universities (No. 2015QN01)