Phase imbalances can occur at both the distribution and transmission l
evels of an electric power system. It is shown that these imbalances c
an have a significant negative impact upon the performance of a state
estimator which utilizes only a positive-sequence model of the power s
ystem. A state estimator which uses a full three-phase model of system
is developed and distribution networks are simulated. Depending on th
e level of imbalances, the improvement in state estimator accuracy can
be dramatic. In addition, a plausible explanation for large reactive
power measurement errors is presented and empirically validated.