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This paper generalizes Benders decomposition to maximize a nonconcave objective function and uses that decomposition to solve an "electric power grid interdiction problem." Under one empirically verified assumption, the solution to this bilevel optimization problem identifies a set of components, limited by cardinality or "interdiction resource," whose destruction maximizes economic losses to customers (and can thereby guide defensive measures). The decomposition subproblem typically incorporates a set of dc optimal power-flow models that cover various states of repair after an attack, along with a load-duration curve. Test problems describe a regional power grid in the United States with approximately 5000 buses, 6000 lines, and 500 generators. Solution time on a 2-GHz personal computer is approximately one hour. [ABSTRACT FROM AUTHOR]