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Estimation of electromechanical modes of a power system has attracted attention in the past few decades because it can provide vital information about the stability of the system. In this paper, a new state-space model is proposed for online detection of parameters of a ringdown signal using an extended Kalman filter (EKF). The proposed model can estimate both constant and time-varying parameters. Furthermore, stability analysis of the proposed model is performed to demonstrate the convergence of the parameters. Simulation results confirm the desirable performance of the proposed method for ringdown parameter estimation.