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In this paper, a generation expansion planning model and a transmission expansion planning model are proposed to inform investment decisions from the perspectives of generation companies and ISOs, respectively. Interactions between large-scale wind integration and transmission system planning are analyzed, and a new computational procedure of system expansion planning that coordinates generation and transmission investment is presented. The cooptimization of energy and ancillary services markets is considered to capture the impacts of wind power on the operation of the electric system. Benders decomposition is employed to reduce the overall computation time.

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