The quality of feeder load distribution estimations will affect the switching schedules and the effectiveness of shunt compensation in distribution system operations. Accurate load distribution estimations are required in order to achieve the best schedule for maximizing the loss reduction. In this paper, a new feeder load distribution estimation method that removes the assumption of coincident peak load made in previous methods is proposed. Considering the non‐conforming load effect, the new method uses data from load surveys and the customer information system to enhance the quality of the estimations. A dynamic programming algorithm is used to investigate the effects of time varying load distribution estimations on the switched capacitor schedules. Test results using actual measurement data have indicated that the proposed method could provide better estimations than the previous methods.