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A smart Grid uses two way digital communications with advanced sensors to collect and analyze data for transforming the existing electric grid into intelligent, dynamic self-healing, self optimizing transmission and distribution grid. Because critical grid events often require real-time recognition and real time response. A smart grid uses IP-based, open standard, intelligent communication to measure real-time events such as congestion, system stability, equipment performance, outages and demand response events. The synchrophasor technology which is accurate, high resolution and real-time monitoring of actual system conditions in wide area. Using PSAT Software the proposed methods has been verified, compared and studied which incorporated elapsed time, speed, observability of buses in whole system for optimal placement.