Existing composite system reliability evaluation models typically calc
ulate the reliability indices based on the events that lead to load cu
rtailment. These indices do not reflect whether or not a system is on
the edge of being in trouble. A power system, however, operates under
different degrees of stress anti strain throughout a period. This pape
r presents an approach to quantify a power network into several operat
ing states in terms of the degree to which adequacy and security const
raints are satisfied. The probabilistic indices calculated in this pap
er to quantify the power network at bulk load points and at system lev
el reflect the actual operating behaviour of a power system. The algor
ithm proposed can be easily incorporated in any composite system relia
bility model that uses enumeration technique for reliability evaluatio
n.