I am considering using PSS/E for building node-breaker model of a small power system, for aiding the development of a substation level state estimation algorithm. In other words, I want to model the substations in greater detail, including their bus sections and breakers.

In doing so, I discovered that PSS/E models zero-impedance branches with zero resistance, but with a small reactance (0.0001 pu, cf. attached image of a breaker-and-a-half bus topology) under a given threshold (given as 0.0001 pu). Why does it do so, and what consequences does it have for a steady-state load flow?

My assumption here is that it does not have a separate modeling for zero-impedance branches, but simply treats them as low-impedance branches. But, why would it then have a zero-impedance threshold? 

I greatly appreciate all inputs you might have on this subject, even if it is suggestion for another program for the same use.

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