This paper discusses common methods of power cable design for electrical submersible pumps and presents a new method which can result in a more optimal design. A procedure is developed for estimating the maximum expected operating temperature of the conductor for each cable size. An accurate selection of power cable insulation type can be made for each cable size based upon the maximum operating conductor temperature. Total cable investment cost can then be determined for each cable size. Power loss calculations are also provided to predict the power cost of the cable. The final cable selection can be determined by economic analysis. Other factors that should be considered when selecting the cable for a specific ESP installation are also discussed.