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This paper is the second in the series dealing with probabilistic station strain bus uprating. The paper describes the formulation, computational procedure, and analytical techniques for evaluating insulator assembly failures due to conductor bundle collapse and conductor swingout. In addition, the problem of conductor clearance has been formulated to determine the probability of interphase flashover. This paper provides detailed descriptions of all the steps involved in the comprehensive probabilistic analysis and presents an application of this technique to a real case of a transformer station (Middleport TS) in Ontario Hydro's power system.