The frequency and duration method has been developed for the evaluation of generating system reliability in the planning of electric power systems. This method makes it possible to determine all major reliability indices: probability and frequency of system deficiency states and the expected energy not supplied to the consumers. For practical applications, simple two-level daily load models have been suggested. The higher load level is taken to match with the estimated daily load peak and the lower level is usually assumed to be equal to mean value for different days. The duration of the higher load level is adopted to be the same for all days but no recommendation has been given as to how to choose it. To investigate the applicability of two-level load models for assessing generation system reliability for planning purposes, a series of comparative analyses of the IEEE Reliability Test System has been performed, applying the exact and various two-level load models. The applicability of two-level models in estimating the absolute and relative system reliability indices is analysed for various generation system structures and load diagram shapes. It has been shown that the two-level load approximation offers a very good estimation of the relative values of all main reliability indices of the prospective generation systems. It has also been established that the two-level diagrams provide fair estimates of the absolute values of the reliability frequency in most cases investigated. This good behaviour of the two-level models has also been found to hold if there are some predictable as well as unpredictable load diagram shape modifications.