In this paper a new remote terminal unit (RTU) placement algorithm is prese
nted. The objective of this algorithm is to place a minimum set of RTUs whi
ch satisfies three important constraints of the problem--observability, abs
ence of critical measurements, and reliability requirements defined in term
s of RTU loss. The problem is solved in a single stage. The results of this
algorithm are interfaced with a linear programming (LP) state estimator. T
his estimator only uses the voltage measurements, and the active and reacti
ve power flows in the lines for the development of the coupled state-estima
tion Jacobian H-matrix, The injection measurements are not currently includ
ed, though in practice they can be easily added to the estimator model. The
inclusion of the injection measurements will enlarge the use of the presen
ted algorithm. The RTU placement algorithm and its link with the LP estimat
or are tested on IEEE standard bus systems. Using the proposed RTU set, the
test results presented show that the LP estimator has very good filtering
capabilities when operated with or without bad data, and that the loss of a
ny RTU does not have any significant impact on the solution.