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In this paper, an application of wavelet packet-enhanced arithmetic coding to compress the electric power disturbance data is proposed. In the proposed method, the wavelet packet is first applied in anticipation that the disturbance signal can be optimally decomposed into higher frequency components and lower frequency ones on a best wavelet basis. Then, the arithmetic coding approach is utilized to reduce the redundancy of data encoding, thereby lowering down the cost related with data storage and transmission. This integrated method has been tested on different scenarios and the results are compared with other published techniques.