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Detection and identification of a power system emergency is necessary to fully utilize the capability of controls to mitigate emergencies. A new classification scheme of power system emergencies and its operating states is presented. Linear sensitivity and D-factor methods are used to identify the overloading of the power system components. Transient stability analysis is used to identify the emergency operating states of power system. Classification and detection of emergencies has been useful for developing emergency operating state controls. Test result shows the use of performance index and transient stability study as suitable for efficient identification of the emergency state of a power system.