Microprocessor-based real-time phasor measurements, i.e. measurement of fundamental frequency, positive sequence, complex three phase voltages and currents, for enhancing on-line protection and control of interconnected electric power systems are described. The proposed research demonstrates that real-time monitoring of key system states, in the bulk power transfer problem, can be identified. It also provides the means for determining which states are the key states for that problem, and that phasor measurements can be used to improve the protection and/or control of the system. The procedure is applied to a realistic system, where such a control problem exists in practice, for confirmation of the developed technique.