I. Introduction
For the economic growth and development of a country, the availability of a reliable power supply at a reasonable cost is crucial. The distribution reliability should be improved since in ninety percentage of the customer reliability problems are due to the problems in the distribution system. Normally the reliability of the substation and the reliability of the distribution system are separately evaluated [1]. For the reliability evaluation Monte Carlo simulation [2], Cut set techniques [3], and state enumeration [2] is the normally used methods. Since the substation components have low failure probabilities, Monte Carlo methods are not efficient in computation. In cut set technique identification of minimum cut set is a complex task and it is difficult to apply the concept to switching actions. The state space method is an approach where the full state space is analyzed to provide an accurate assessment of the reliability [4]. Computational effort is more for this technique. The reliability assessment with Markov Model approach is discussed here. The assessment is necessary for the future extension of the feeder and the up gradation of the substation.