A method for detecting a phase imbalance of an electrical component in a machine due to an actual fault is provided. The method includes receiving electrical parameter values associated with a plurality of phases of an electrical component, detecting a phase imbalance in the plurality of phases, calculating an imbalance ratio of the plurality of phases, applying a plurality of conditions to the imbalance ratio and to the received input vector, the plurality of conditions being associated with an actual fault in the machine, and determining whether the detected phase imbalance is due to a controls induced imbalance in the machine or due to the actual fault in the electrical component of the machine when at least one of the plurality of conditions is met.