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In savnw.sav 201-204-205 is a multi-section line, so for PSS/E it is the same are you disconnecting 201-204 or 201-205. But I don't have experience with multi-section lines and I newer use them so you need to read PSS/E manual if you want to learn more. As I can see in savnw.sav bus 201 has voltage 500 kV, bus 204 also 500 kV but bus 205 has 230 kV, so this should be power transformer. I would better use normal way of modelling power transformers.