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In this paper, a two-dimensional Life Cycle Cost (LCC) model of power system planning as a whole is established in order to overcome the defect that the applications of LCC are traditionally limited to specific equipment or phase. The previous researches of LCC technology are reviewed. The cost breakdown structure is described in detail particularly from the device layer and the system layer. The maintenance costs combining with Reliability Centered Maintenance (RCM) and the failure costs combining with outage costs are analyzed significantly. Using this model, LCC estimate of two alternatives for transmission section of 500kV power system planning in East China Power Grid is implemented, during which the data management system, the LCC calculation results, the sensitivity analysis and the applications are all considered. The case results verify the feasibility and validity of this LCC model. The proposed approach provides a new idea and effective way to enhance the cost management business for the enterprises in the future.