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This paper describes a new approach f o r assessing Adequacy and Security of bulk power systems. The method takes into account generation and transmission failures, load variation, generation economic dispatch, security limits, maintenance schedules, the control actions implemented in emergencies, and the impact of different operating schemes. Reliability indices for generation Adequacy, transmission Adequacy and system Security are defined. The proposed method is demonstrated by application to the IEEE Reliability Test System (RTS) . .O INTRODUCTIONAt system planning time, there are three fundamental 1. Transient performance adequacy. This represents the capability of the system to be operated so that the system remains stable when failures occur.2. Reserve adequacy. This relates t o whether the amount and response of the generation and transmission reserves, are sufficient t o avoid excessive load cuts and other undesirable impacts in the aftermath of failure events.3. Capacity adequacy. This relates t o whether the installed generation and transmission capacity is sufficient t o meet the load and the operating reserve requirements, for generation and transmission, with due recognition of scheduled and forced outages.The first two considerations are collectively referred t o as Security, while the third consideration is referred to as Adequacy.This paper describes a computational procedure that has been developed in Ontario Hydro for the composite assessment of Adequacy and Security for the bulk power system. This method provides a meaningful quantification of Security and Adequacy which allows practical comparison of alternatives in terms of load cuts and of the trade-offs between the increase of reliability and higher equipment and operating costs.The proposed method is illustrated by applying it t o compute Adequacy and Security indices for the IEEE Reliability Test System (RTS) [ l l ] augmented t o permit transient analysis.reliability related design considerations, namely.

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