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A method of simulating single and multiple transmission element (line and transformer) outages is discussed in the paper. The method simulates the outaged system states assuming the scheduled demands of the end buses of the outaged elements are still met. Sensitivity relationships of power systems are used both to determine the required power injections into the end buses, and to determine the corresponding corrections to the phase angles and magnitudes of bus voltages. The proposed method has been applied to the 30-bus and 118-bus IEEE standard test systems. Relevant results are presented and discussed.