The paper describes the algorithm for distributed state estimation (SE) and is focused on its testing and validation. For this purpose, different events in the modeled power system of the 330-750 kV electrical ring Latvia - Lithuania - Belarus - Smolensk - Moscow - St. Petersburg - Estonia - Latvia were considered. The methods for testing the Inter-TSO SE prototype and dynamic network monitoring & modeling are based on comparison of the available SCADA data about real events with those of SE calculation. In total, four operational states were studied, including initial, accident and two post-accident operational states