In this study, power quality (PQ) signals are analyzed by using Welch (non-parametric) and autoregressive (parametric) spectral estimation methods. The parameters of the autoregressive (AR) model were estimated by using the Yule-Walker method. PQ spectra were then used to compare the applied spectral estimation methods in terms of their frequency resolution and the effects in determination of spectral components. The variations in the shape of the obtained power spectra were examined in order to detect power system transients. Performance of the proposed methods was evaluated by means of power spectral densities (PSDs). Graphical results comparing the performance of the AR method with that of the Welch technique are given. The results demonstrate superior performance of the AR method over the Welch method. (c) 2007 Elsevier Ltd. All rights reserved.