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Due to its intermittent nature, integrating large quantities of wind power in power systems has serious impacts on power system operation. Wind power increases the load variation and the reserve requirements for contingencies. Utilities are especially concerned about the wind power availability during the peak load demand time. Conventional generation can obtain capacity credit because they can produce “firm” power during the peak load demand time. As wind power is intermittent it is normally given zero or small capacity credit. In this paper, the wind variation and capacity credit for multiple wind farms distributed in Wyoming are analyzed based on actual wind data. Considering multiple wind farms as part of one big wind farm distributed over a large area can decrease the wind power variation and increase the capacity credits. As the method used here to calculate capacity credit is the same one used by electric utilities, the potential for awarding more capacity credit to multiple wind farms is very good.