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This paper discusses new types of sensors and data management approaches that can be applied to operate and manage the grid more efficiently and flexibly while maintaining reliability. Sensors can help increase awareness of asset condition and grid conditions for more optimum management of the grid. Integration of sensors with system models to predict conditions on the grid can further improve the grid management potential. Examples of sensors that can contribute to smart grid goals include advanced meters, wireless voltage and current sensors, line post sensors, sensors integrated with IEDs, PMUs, etc. These devices must be integrated with data collection systems, data management systems, and system models to help achieve new functionality that benefits the overall efficiency, reliability, and flexibility of the grid.