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Reliability analysis is not usually conducted on a complete power system, and reliability evaluations of generating facilities, transmission systems, and of distribution system segments are usually conducted independently. The reliability indices obtained for each segment are then used to make decisions. A more realistic procedure involves categorizing the generating, transmission and distribution zones into hierarchical levels and performing reliability analysis of these levels. The authors illustrate the reliability indices which can be obtained at these hierarchical levels. The analysis considers element outages in all parts of an electric power system to provide a comprehensive appraisal of the overall system. The concepts involved in the reliability evaluation of a complete power network are presented using an educational test system developed at the University of Saskatchewan.