This work includes the simulation of hysteretic AC losses in two-layer HTS power transmission cables made of second-generation high-temperature superconducting tapes with a ferromagnetic substrate subject to an oscillating AC transport current, calling upon the COMSOL Multiphysics finite-element software program and exploiting an AC/DC module. How the AC transport loss is influenced by the arrangement of tapes, as well as the optimized design of superconducting power cables based on YBCO-coated conductors, are investigated. According to the radial arrangement of the tapes, four different orientations of ferromagnetic substrate are considered: 1) out-in (substrate of inner/outer layer facing outward/inward), 2) in-out (substrate of inner/outer layer facing inward/outward), 3) in-in (substrates of both inner and outer layers facing inward), and 4) out-out (substrates of both inner and outer layers facing outward). We found that the AC loss of the superconducting layer for the out-in arrangement is the lowest. We also compare our calculations with experimental results.