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The correct answer is that it is NEVER allowed to reconnect a generator during a dynamic simulation, even if PSSE doesn't prohibit you from doing it! I.e. never change the status from 0 to 1 for a generator in a dynamic simulation!!!

If you want to resynchronize a generator in PSSE you have to disconnect the step-up transformer and thereby keeping the generator running in a separate island, and reconnect the transformer after a certain time. The isolated generator will accelerate so you should syncronize again at a proper time in order to avoid too large angle difference.