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Present renewable portfolio standards are changing power systems by replacing conventional generation with alternate energy resources such as photovoltaic (PV) systems. With the increase in penetration of PV resources, power systems are expected to experience a change in dynamic and operational characteristics. This paper studies the impact of increased penetration of PV systems on static performance as well as transient stability of a large power system, in particular the transmission system. Utility scale and residential rooftop PVs are added to the aforementioned system to replace a portion of conventional generation resources. While steady state voltages are observed under various PV penetration levels, the impact of reduced inertia on transient stability performance is also examined. The studied system is a large test system representing a portion of the Western U.S. interconnection. The simulation results obtained effectively identify both detrimental and beneficial impacts of increased PV penetration both for steady state stability and transient stability performance.