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Currently, two motivators are effecting change in power systems education. First, the industry's transition to a more competitive environment is requiring changes in the content and pedagogy of power systems education. Second, engineering education as a whole is seeking to modify its curriculum to reflect a better balance between science and education in order to better meet the needs of industry. These curricular changes are largely a result of revised Accreditation Board for Engineering and Technology (ABET) accreditation requirements. In response to these changes, new curriculum and analysis tools were developed for a power systems capstone design course. The project integrates market economics and socio-political considerations with transient stability analysis and transmission planning. A power systems analysis package and an economic analysis tool were developed for use with this project. Student evaluations of the course in which the project was implemented indicate that the curriculum successfully addresses a broad range of ABET accreditation criteria.