- This paper develops new models and concepts for incorporating the effect of protection system failures into power system reliability evaluation. The two types of protection failures, i.e., undesired-tripping mode and fail-to-operate mode, and their impact on reliability modeling are discussed. A complete Markov model for current-carrying components is established and its simplified form appropriately describes the overall reliability situation of individual components. Concepts of self-down state and induced-down state are introduced and used to build the composite unit model for quantitatively assessing the influence of protection failures on modeling system states. Finally, a Markov model of power systems with protection failures is proposed for system reliability evaluation. The proposed methodology is then illustrated in detail. 2006 IEEE.