Abstract-This p a p er aims at assessin g the p ower system reliability by estimatin g loss of load (LOL) index usin g mutual information based Bayesian approach. Reliability analysis is a key component in the desi g n, analysis and tunin g of complex structure like electrical power system. Consideration is g iven to rare events while constructin g the Bayesian network, which provides reliable estimates of probability distribution function of LOL with lesser computin g effort. Also, the rankin g of load components due to loss of load is evaluated. The RBTS and IEEE RTS-24 systems are used as test cases.Index Terms-Power system reliability, mutual information, Bayesian analysis, reliability assessment.