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This paper generalizes Benders decomposition to maximize a nonconcave objective function and uses that decomposition to solve an ldquoelectric power grid interdiction problem.rdquo Under one empirically verified assumption, the solution to this bilevel optimization problem identifies a set of components, limited by cardinality or ldquointerdiction resource,rdquo whose destruction maximizes economic losses to customers (and can thereby guide defensive measures). The decomposition subproblem typically incorporates a set of DC optimal power-flow models that cover various states of repair after an attack, along with a load-duration curve. Test problems describe a regional power grid in the United States with approximately 5000 buses, 6000 lines, and 500 generators. Solution time on a 2-GHz personal computer is approximately one hour.