  We consider the problem of designing (or augmenting) an electric power system
such that it satisfies the N-k-e survivability criterion while minimizing total
cost. The survivability criterion requires that at least (1-e) fraction of the
total demand can still be met even if any k (or fewer) of the system components
fail. We formulate this problem, taking into account both transmission and
generation expansion planning, as a mixed-integer program. Two algorithms are
designed and tested on modified instances from the IEEE-30-Bus and IEEE- 57-Bus
systems.
