-This paper proposes various design procedures for computing Power System Ancillary Service Requirement Assessment Indices (PSASRAI) for a Two-Area Thermal Reheat Interconnected Power System (TATRIPS) in a restructured environment. In an interconnected power system, a sudden load perturbation in any area causes the deviation of frequencies of all the areas and also in the tie-line powers. This has to be corrected to ensure the generation and distribution of electric power companies to ensure good quality. A simple Proportional and Integral (PI) controllers have wide usages in controlling the Load Frequency Control (LFC) problems. So the design of the PI controller gains for the restructured power system are obtained using Bacterial Foraging Optimization (BFO) algorithm. From the simulation results, the PSASRAI are calculated based on the settling time and peak over shoot concept of control input deviations of each area for different possible transactions. These Indices are useful for system operator to prepare the power system restoration plans. Moreover, the LFC loop coordinated with Redox Flow Batteries (RFB) has greatly improved the dynamic response and it reduces the control input requirements and to ensure improved PSASRAI, thereby improving the system reliability.