This paper presents algorithm to plan construction and expanding of substation considering contingency accidents by proposing utilization factor according to configuration of substation bank system. In this paper, firstly, proper sphere of supply area by each district which could be standardized with respect to its supply capacity is established under assumption of long term load forecasting. Secondly, goal of utilization ratio based on configuration of substation bank was set to keep reliability by remaining sound bank when it happen to one bank accidents. Finally, it is set up for optimal construction and expanding of substation considering economy and reliability simultaneously about substation to exceed these ratio. To verify proposed algorithm, at first, after adopting a part of Kangnam area in Seoul as area for testing, it is divided into several regions for this area according to power branches of power utility. Secondly, by deriving correlation factor between load demand and economic indicators in these region respectively, the regional load forecasting was performed with economic growth and city plan scenario. Finally, based on the predicted load demand by region and land use data which is identified from air-photographic, the load demand by district was predicted. Also, planning for substation considering contingency is formulated to expand taking into account computing utilization factor which is based on configuration of substation bank respectively.