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This papers presents a general formulation for obtaining a reduced-order model by using selective modal analysis. A reduction example with one and another with three relevant modes are shown. By using eigenvalue sensitivity with respect to a positive bus power injection (negative load), the impact of wind turbine generators (WTGs) on power system operation is analyzed. Lastly, electricity market issues are discussed. The WTG reduced-order model is found attractive for studying new operational and planning procedures in power systems along with the design of appropriate market structures.