Aiming to solve the problems of low degree of practical application, complexities of project implementation and extraction difficulty and lack of interaction with the scheduling and control center of expert knowledge bank rules about intelligent alarm of smart substation, two-stage distributed intelligent alarm system about scheduling and control center and substation is proposed. It uses pluggable intelligent alarm analysis engine as core driver, adopts two stages integral analysis and decision strategies, improves plug and play and extendable abilities of intelligent alarm and solves the problem of project practicability about intelligent alarm functions. Analysis and reasoning results are reasonably and hierarchy transmitted the control center by service-oriented form in two-stage distributed intelligent alarm system which improves the degree of interaction with scheduling and control center and effectively reduces communications and computing burden of scheduling and control center. Finally, the effect of project application about this system is given.