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This paper presents a methodology for the review and improvement of reliability and security standards and the development of additional ones required for maintaining the secure and reliable operation of existing electric power systems. These standards shall also prepare them for the challenges to be faced in the future with big changes as expected from the Smart Grid. The first part of the methodology correspond to the review and analysis of the current situation focusing on the operating structure and the existing set of operating standards in comparison with leading international practices. As a result, changes and improvements to existing operating reliability and security standards and additional standards can be formulated and analyzed. In a second part a set of proposed standards is formulated together with the relevant organizations that deal with those standards. Validation simulations of quantitative criteria and technical performance requirements with a set of indicators which also allow the continuous verification of the system performance with respect to its security and reliability are analyzed. The methodology is a continuous process since changes can be introduced if some specific conditions that require standard adjustment take place.