Today, more and more complex power drive system (PDS) applications are being used in which an arbitrary number of inverters with different, autonomous drive frequencies are connected to a single dc bus. If long feeder cables, different inverter output circuits, and unfavorable grounding conditions simultaneously occur, then electrical oscillations with high peak values of the voltage between the motor terminals and ground may be generated. Occasionally, these can exceed the peak values of the generally better known mechanism of traveling waves [1], [2]. The complex design of recent drive systems requires more knowledge about the interaction of the components being used in the system and of the resulting effects. This knowledge forms the basis for the design of reliable drive systems. One of the major reliability topics for variable-speed power drive systems has long been the lifetime of the winding insulation system. The winding insulation system may manifest partial discharge (PD) because the electrical stress is higher for these systems than it is for drive systems that are directly connected to the line supply [1], [4]. In the classic approach (see Figure 1) [4], [5], it is assumed that the peak voltages stressing the insulation system of the motor winding would be more or less constant and the PD inception voltage of the winding insulation would also be a deterministic value. From this, it is derived that an adequate lifetime can only be achieved by ensuring operation without PD. In case of operation with PD, the lifetime would be reduced to an unacceptable level. The approach presented in this paper considers both the generation of peak voltages, which stress the winding insulation system, as well as the associated stochastic PD inception behavior. This results in a statistically-based insulation coordination and a reliability-based economic design of the complete drive system (see Figure 2). © 2009 IEEE.