In this paper, fundamentals of the transmission-line-modeling or matrix (TLM) method are briefly explained, and procedures to incorporate lumped-circuit elements such as a resistor, an inductor, and a capacitor in TLM computations are described. Then, the method is applied to analyzing surges on conductor systems including lumped-circuit elements. The surge waveforms calculated using the TLM method agree well with the corresponding waveforms calculated using the finite-difference time-domain (FDTD) method.