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In this paper, a waveform relaxation algorithm is presented for the efficient transient analysis of large power distribution networks. The network is modeled as an orthogonal grid of transmission lines where a delay-extraction-based macromodel is used to represent each line segment in the time domain. Novel partitioning and iterative techniques are proposed for fast convergence and improved scalability of the proposed relaxation algorithm. The overall algorithm is highly parallelizable and exhibits good scaling with both the size of the circuit matrices involved and the number of CPUs available. Numerical examples are presented to illustrate the validity and efficiency of the proposed algorithm.