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This paper investigates a conceptual, theoretical framework for power system contingency analysis based on agglomerative hierarchical clustering. The security and integrity of modern power system networks have received considerable critical attention, and contingency analysis plays a vital role in assessing the adverse effects of losing a single element or more on the integrity of the power system network. However, the number of possible scenarios that should be investigated would be enormous, even for a small network. On the other hand, artificial intelligence (AI) techniques are well known for their remarkable ability to deal with massive data. Rapid developments in AI have led to a renewed interest in its applications in many power system studies over the last decades. Hence, this paper addresses the application of the hierarchical clustering algorithm supported by principal component analysis (PCA) for power system contingency screening and ranking. The study investigates the hierarchy clustering under different clustering numbers and similarity measures. The performance of the developed framework has been evaluated using the IEEE 24-bus test system. The simulation results show the effectiveness of the proposed framework for contingency analysis. [ABSTRACT FROM AUTHOR]