Providing quality and reliable power supply to the customers is the vital role in the power system. To deliver the economic and uninterrupted supply to the customers, the concept of restructuring the power system is an efficient notion to evaluate. The reliability of the power system can be checked by the reliability index. The chronological load model is introduced to evaluate reliability index in the vertical and restructured power system. There are many compensators, reactors and capacitor banks employed to control the power flow, but FACTS plays a superior role to control the power flow parameters. To examine the improvement in the reliability index, FACTS devices can be located at the optimal location. The ideal location to install the FACTS can be identified from the power flow analysis with required constraints and the corresponding reliability index will be calculated using chronological load model. Economic operation of transmission and the distribution was also achieved by using FACTS devices. The proposed assessment reveals that the objectives of power system reliability parameters in the deregulated power system can be achieved by the chronological load model.