This paper proposes a methodology for identifying and assessing the impact of distributed generation interconnection on distribution systems using Monte Carlo techniques. This methodology consists of two analysis schemes: a technical analysis, which evaluates the reliability conditions of the distribution system; on the other hand, an economic analysis that evaluates the financial impacts on the electric utility and its customers, according to the system reliability level. The proposed methodology was applied to an IEEE test distribution system, considering different operation schemes for the distributed generation interconnection. The application of each one of these schemes provided significant improvements regarding the reliability and important economic benefits for the electric utility. However, such schemes resulted in negative profitability levels for certain customers, therefore, regulatory measures and bilateral contracts were proposed which would provide a solution for this kind of problem.