Traditionally, bulk power reliability evaluations have concentrated on the analysis of system adequacy, the ability of the generating and the transmission systems to supplhy all loadas within performance requirements. This work presents a new methodology that extends the scope of reliability evaluations to include probabilistic assessment of system security, involving considerations of transient stability and the effects of cascading sequences. The methodology is based on a sequential simulation process which is suitable for representing the effects of system disturbances and non-Markovian processes, like the restoration process. The calculated set of reliability indices may be used to measure the security level, and to evaluate the performance of the protection systems, emergency control schemes and restoration processes. The test system IEEE-MRTS is used to illustrate the application of the proposed methodology, identifying the features that are most influent to system security, and also the relationship between adequacy and security problems.