EXECUTIVE SUMMARYSmall signal stability problems are one of the major threats to grid stability and reliability in California and the western U.S. power grid. An unstable oscillatory mode can cause large-amplitude oscillations and may result in system breakup and largescale blackouts. There have been several incidents of system-wide oscillations. Of them, the most notable is the August 10, 1996 western system breakup produced as a result of undamped system-wide oscillations. There is a great need for real-time monitoring of small-signal oscillations in the system. In power systems, a small-signal oscillation is the result of poor electromechanical damping. Considerable understanding and literature have been developed on the small-signal stability problem over the past 50+ years. These studies have been mainly based on a linearized system model and eigenvalue analysis of its characteristic matrix. However, its practical feasibility is greatly limited because power system models have been found inadequate in describing realtime operating conditions. Significant efforts have been devoted to monitoring system oscillatory behaviors from real-time measurements in the past 20 years. The deployment of phasor measurement units (PMU) provides high-precision time-synchronized data needed for estimating oscillation modes. Measurement-based modal analysis, also known as ModeMeter, uses real-time phasor measurements to estimate system oscillation modes and their damping. Low damping indicates potential system stability issues. Oscillation alarms can be issued when the power system is lightly damped. A good oscillation alarm tool can provide time for operators to take remedial reaction and reduce the probability of a system breakup as a result of a light damping condition. To facilitate ModeMeter development and evaluation, the Western Electricity Coordinating Council (WECC) has conducted a number of system tests in the past decade. The tests include large signal tests through insertion of the 1,400 MW Chief Joseph brake resistance, mid-level signal tests through ±125 MW modulation of Pacific DC Intertie (PDCI) real power set values, and noise probing tests through ±10-20 MW modulation of the PDCI power. Recently, the system tests have advanced to a weekly basis, towards future continuous tests and real-time oscillation monitoring. Real-time oscillation monitoring requires ModeMeter algorithms to have the capability to work with various kinds of measurements: disturbance data (ringdown signals), noise probing data, and ambient data.Several measurement-based modal analysis algorithms have been developed. They include Prony analysis, Regularized Robust Recursive Least Square (R3LS) algorithm, Yule-Walker algorithm, Yule-Walker Spectrum algorithm, and the N4SID algorithm. Each has been shown to be effective for certain situations, but not as effective for some other situations. For example, the traditional Prony analysis works well for disturbance data but not for ambient data, while Yule-Walker is designed for ambient data only....