An A. C. load flow analysis of the reliability evaluation of composite generation and transmission systems is presented on the basis of a fast outage simulation algorithm and an optimal model of active and reactive power adjustment after outage contingencies. The information of the first -level outage events is utilized for simulating higher -level outage events in the fast outage simulation algorithm ; the optimal model is satisfactory in speed and accuracy with the application of concentric relaxation and linear increment constraint on the comprehensive adjustment of active and reactive power. As an example. the IEEE Reliability Test System is tested and the results show that the method is accurate and well-matched in speed with the method studied by R. Bllinton, et al.