A system capable of monitoring a mine electrical power system to detect incipient electrical component failure could significantly improve power system safety and availability. The Bureau of Mines funded a contract with the Pennsylvania State University (Penn State) to establish the theoretical and technical framework for such a system. This report briefly outlines the contract, reviewing related Bureau and penn state work prior to its award, and describes support work carried out by the Bureau. The main focus of the report is on research efforts by penn state and subsequent results. An existing algorithm for incipient-failure detection and classification was studied, and recommendations are made to improve its performance. In addition, mathematical models of cable- connected motor systems and deteriorating motors were developed and implemented on computers. These models and laboratory tests were used to study and document relationships between component deterioration and electrical terminal effects. The project was supported by the U.S. Navy, and the nature of its interest in the application of failure prediction techniques is also included.