  The dynamic response of power grids to small disturbances influences their
overall stability. This paper examines the effect of network topology on the
linearized time-invariant dynamics of electric power systems. The proposed
framework utilizes ${\cal H}_2$-norm based stability metrics to study the
optimal placement of lines on existing networks as well as the topology design
of new networks. The design task is first posed as an NP-hard mixed-integer
nonlinear program (MINLP) that is exactly reformulated as a mixed-integer
linear program (MILP) using McCormick linearization. To improve computation
time, graph-theoretic properties are exploited to derive valid inequalities
(cuts) and tighten bounds on the continuous optimization variables. Moreover, a
cutting plane generation procedure is put forth that is able to interject the
MILP solver and augment additional constraints to the problem on-the-fly. The
efficacy of our approach in designing optimal grid topologies is demonstrated
through numerical tests on the IEEE 39-bus network.
