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This paper considers the impact that terminal station failure events have on the contingencies of connected lines and generators which should be included in the reliability evaluation of a composite system. It describes algorithm which simulate various failure modes of station components, deduce the resulting contingencies and their reliability indices, group together identical contingencies and cumulate the resulting reliability indices. This is a new approach for determining the effect of station failures on station-originated outages. The results can be used to assess the reliability of the stations themelves and as input data to a composite system reliability evaluation technique.

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