This paper includes some of the Israeli Smart Grid Consortium research interests in the field of monitoring enhancement capabilities in general, and in electrical anomalies and certain faults diagnostics in particular. The method presented in this paper is based on considering all faults as power quality problems and harmonics phenomena. Namely, anomalies in power systems are analyzed either as a periodical disturbance or transient ones. The paper focuses on the harmonic spectral decomposition of periodic anomalies and waveforms resulting in nonlinear loads. The theory is described as an extension to the Current Physical Components Theory (CPCT), which is a method to define various physical components in a given current waveform. In this paper, all nonlinear loads are assigned to have a unique signature and are considered as a power quality problem. Then the theory is implemented on simulated waveforms, as well as measured ones attained from power quality monitors.