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With the rapid development of Qingdao power grid, more and more alarm signals are processed on account of the huge amount of data for dispatching automation system which is an important part of Smart Grid, causing large workload and overlong inspecting time. Firstly the function and feature of the intelligent alarm expert system is introduced. Then the configuration and improvement combined with practice in Qingdao is discussed. Finally the application of the system is analyzed; showing that reasonable configuration of the expert system can improve efficiency of monitoring and the level of fault treatment in order to provide a secure guarantee for the operation of power grid.