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Wind power is an intermittent and fluctuating energy source, which is quite different from conventional energy sources. Reliability evaluation on power system with wind power is an important issue. Monte Carlo method is a traditional approach, but it is not considering the steady-state operation of system. This paper presents a new method, which is based on steady-state power flow, for reliability evaluation of power system with wind power. The related reliability models including wind speed, wind turbine generator (WTG), conventional generator, and load are proposed. Finally, an example is analyzed, and four reliability indices are evaluated and compared on two conditions: with and without reactive power compensator. The results of the analysis confirm that the reactive power compensator can improve power system reliability.