This paper introduces a method of determining the maximum real power transfer limit of interface lines, which connect two areas of a power system, using locally parameterized continuation algorithm. This method traces the path of power flow solutions as interface flow is gradually increased under a certain load demand condition and finds the steady state voltage stability limit, the interface flow limit. Voltage stability index is used to indicate how close the maximum limit is reached. Also, this study presents a procedure to determine the security-constrained interface flow limit using the above method. Contingency ranking index is proposed to identify the severity of contingencies. The case study is performed according to the suggested procedure.