Abstract The power industry in the US and Europe is going through a major transition. The change that the telecommunication industry experienced in the early 80's as a result of government deregulation is analogous to what is now facing the utilities. Government deregulation, open transmission access, presence of independent power producers (IPPs), and increased attention to the global air pollution have introduced major challenges to the utility industry. Smart sensors and intelligent control are believed to play a very important role in the future operation and survival of the electric power industry. Development of real-time optimal load scheduling, on-line optimal power rate determination, signature analysis, and pattern recognition for major load identification, active control for increased power quality, optimal demand-side management, closed loop combustion process control for pollution reduction, etc., are examples of control system application areas that have potential for major economic impacts in the power industry. Development of new sensors and sensory systems, e.g., real-time SO2 measurement in generation control or gas density sensor for high power transformer, that would provide information about die state of the system can be used for preventative maintenance as needed rather than as scheduled. Thus, advanced control and sensory systems can provide the technological advancement required for power industry in this highly competitive era. In this regard, the Electric Power Research Institute (KPRI) along with major utilities and the National Science Foundation (NSF) have initiated several programs both in industry and in universities in the areas of smart sensory systems and intelligent control. The main objective of this panel is to bring together industry representatives as well as university researchers involved in these initiatives to discuss: • State-of-the-art in control of electric power systems; • Role of smart sensors and intelligent control in the new utility business environment; • Industry needs and identification of future research directions.