This is a joint project staffed by investigators at Virginia Polytechnic Institute and State University and Cornell University. The motivation of the work is the extension of the capabilities of power transmission systems to a point closer to their thermal limits. This is done by extending (expanding) the stability and security limits of the system. The approach is the use of an improved out-of- step relay which employs real time phasor measurements. Included in the project are issues of protective relaying, modelling, the one machine/infinite bus equivalent, and network dynamic reduction. The project builds on work using the Global Positioning Satellite for real time phasor measurements with applications in power system protective relaying. This project is being jointly funded by the Electric Power Research Institute and the National Science Foundation.