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This paper presents a technique for accurate discrimination between transient voltage stability and voltage sag by combining damped sinusoids-based transient modeling with neural networks. Transient modeling is accomplished by energy adapted matching pursuits with an over-complete dictionary of damped sinusoids. In our approach, the information provided by the damped sinusoids-based transient modeling stage is applied to a Neural Network, which determine in a fast and accurate fashion the class to which the waveform belongs. The simulated results clearly show that the proposed technique can accurately discriminate between transient voltage stability and voltage sag in power system protection.