A new neutral point operation method was proposed with respect to the problem of compensation degree of arc-suppressing coils in 35 kV power grids of mountainous areas and the problem of unbalanced three-phase voltages. This method can not only maintain a balanced three-phase voltage, but also improve the arc-suppressing ability. A lot of calculations of the static process were conducted, and results proved that the operation method proposed in this paper is effective and feasible to improve operation ability of 35 kV power grids in mountainous areas and reduce lightning tripping rate.