This paper addresses the issues of the external system modeling and th
e detection of topology errors in the external system. A set of signif
icant measurements and branches are identified in the external system
based on their sensitivities on the tie-line flows. Any errors in the
topology of the external system branches that are identified as signif
icant are then detected. This is based on the degree of colinearity of
the columns of the sensitivity matrix to the calculated normalized re
siduals of the significant measurements in the external system. Simula
tion results are presented using the IEEE 118 bus system as an example
.