Recently, the needs and concerns regarding power loss have been increasing according to energy conservation at the level of the national policies and the business strategies of power utilities. In particular, the issue of power loss is the main factor for determining rates for electrical consumption in the deregulation of the electrical industry. However, because of the lack of management for power loss load factors (LLF) it is difficult to make a calculation for power loss and to make a decision concerning the electric rates. Furthermore, loss factor (k-factor) in Korea, which is of primary significance in the calculation of distribution power loss, has been used as a fixed value of 0.32 since the fiscal year 1973. Therefore, this study presents the statistical calculation methods of the loss factors classified by load types and seasons by using the practical data of 65 primary feeders that have been selected by appropriate procedures. Based on the above, the algorithms and methods, as well as the optimal method of the distribution loss management classified by facilities such as primary feeders, distribution transformers and secondary feeders is presented. The simulation results demonstrate the effectiveness and usefulness of the proposed methods.