A simple dynamic equivalent for a power system external area containing a group of coherent generators is proposed for on-line transient stability assessment. The proposed method is based on decomposition and aggregation of generators. The idea of decomposing generators is a completely new idea. The resulting equivalent is simple as required for on-line application. With the knowledge of only the passive network model of the external area and the total inertia of the generators in this area, the parameters of this equivalent are determinable from a set of measurement data taken solely at the boundary buses. The method does not require any measurement data at the original generators. This important feature makes the proposed equivalent attractive and suitable for on-line applications. In this project, a thorough investigation will be made to evaluate the performance of the proposed equivalent. Further, the proposed method will be compared with one of the state-of-the art methods of forming dynamic equivalents. Dissemination of results will be through conference presentations and publications. This research will provide a powerful tool that can play a very important role in the secured operation of power systems. The proposed research involves one faculty member and two undergraduate students from the Electrical Engineering Technology (EET) Program Unit of South Carolina State University. Besides these students, other EET students (senior) will be involved in this project in different ways to integrate research and education. This project will allow PI to have an infrastructure in place to conduct research.