  Fault analysis and bad data are often processed in separate manners. In this
paper it is proved that fault as well as bad current measurement data can be
modeled as control failure for the power transmission network and any fault on
the transmission line can be treated as multiple bad data. Subsequently a
linear observer theory is designed in order to identify the fault type and bad
data simultaneously. The state space model based observer theory allows a
particular failure mode manifest itself as residual which remains in a fixed
direction. Moreover coordinate transformation is performed to allow the
residual for each failure mode to generate specific geometry characteristic in
separate output dimensions. The design approach based on the observer theory is
presented in this paper. The design allows 1) bad data detection for current
measurement, and 2) fault location, and fault resistance estimation (as a
byproduct) where the fault location accuracy is not affected by fault
resistance. However it loses freedom in designing the eigenvalues in the
excessive subspace. While the theoretical framework is general, the analysis
and design are dedicated to transmission lines.
