Power transmission systems of today are operating closer to their limits due to economic and environmental constrains. As a consequence, many systems around the world experience voltage collapse leading to partial or complete blackouts. Load shedding is a cost effective solution for preventing system collapse. In this paper, a new load shedding scheme based on the algorithm of time to voltage collapse is presented. The developed scheme uses not only local voltage and current measurements but also measurements from nearby buses to determine optimum time and location for load shedding. The developed scheme was tested using the IEEE 30-Bus test system for variety of operating conditions.