Since the network parameters may vary with the changing power gird operation conditions and the remote information may also contain errors under some contingency， there could be parameter errors in the state estimation process. In order to provide a correct operation state with the sate estimation， the parameter errors must be recognized and corrected. Currently in a power system there are two measurement passes， viz. the supervisory control and data acquisition（SCADA） system and the wide area measurement system（WAMS）. This paper aims at constructing Lagrange function by combining the SCADA measurement residuals with the power flow residuals of zero-injection node and residuals from WAMS measurements， and to get the sensibility matrix with respect to the residuals and parameter errors based on the optimization theory. With the obtained sensibility matrix， the parameter errors can be recognized and corrected. The proposed method can effectively overcome high dimensionality problem of the augmented state estimation. It can also utilize high precision phasor measurements from phasor measurement units（PMU）. The efficiency of the proposed method has been tested on a standard test system.