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With ever increasing demand for electric energy, additional generation and associated transmission facilities has to be planned and executed. In order to augment existing transmission facilities, proper planning and selective decisions are to be made whereas keeping in mind the interests of several parties who are directly or indirectly involved. Common trend is to plan optimal generation expansion over the planning period in order to meet the projected demand with minimum cost capacity addition along with a pre-specified reliability margin. Generation expansion at certain locations need new transmission network which involves serious problems such as getting right of way, environmental clearance etc. In this study, an approach to the citing of additional generation facilities in a given system with minimum or no expansion in the transmission facility is attempted using the network connectivity and the concept of electrical distance for projected load demand. The proposed approach is suitable for large interconnected systems with multiple utilities. Sample illustration on real life system is presented in order to show how this approach improves the overall performance on the operation of the system with specified performance parameters.