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This paper presents a new technique for automatic monitoring of power quality events, which is based on the multiresolution S-transform and Parseval's theorem. In the proposed technique, the S-transform is used to produce instantaneous frequency vectors of the signals, and then the energies of these vectors, based on the Parseval's theorem, are utilized for automatically monitoring and classification of power quality events. The advantage of the proposed algorithm is its ability to distinguish different power quality classes easily. In addition, the magnitude, duration, and frequency content of the disturbances can be accurately identified in order to characterize the disturbances. The paper provides the theoretical background of the technique and presents a wide range of analyses to demonstrate its effectiveness.