The high penetration of distributed generations will lead to more severe security problem in the process of reconfiguration, and the closing loop current may not meet the requirements of distribution network. New-type phase shifting transformer can adjust the amplitude and phase simultaneously, which is an important means to effectively solve the problem of loop closing or opening. Therefore, a newtype phase shifting transformer is proposed to be installed in the closed-loop line, and a double-layer optimization model for distribution network reconfiguration is designed. The upper layer of the model performs distribution network reconfiguration to optimize system network losses, while the lower layer optimizes the order of the closing loops with the objective of minimizing the closing loop impulse current. The case results demonstrates that the proposed strategy of reconfiguration can greatly reduce the closing loop current and improve the safety margin of closing loop operation while reducing the loss of distribution network.