This paper aims at automatic classification of power quality events using Wavelet Packet Transform (WPT) and Support Vector Machines (SVM). The features of the disturbance signals are extracted using WPT and given to the SVM for effective classification. Recent literature dealing with power quality establishes that support vector machine methods generally outperform traditional statistical and neural methods in classification problems involving power disturbance signals. However, the two vital issues namely the determination of the most appropriate feature subset and the model selection, if suitably addressed, could pave way for further improvement of their performances in terms of classification accuracy and computation time. This paper addresses these issues through a classification system using two optimization techniques, the genetic algorithms and simulated annealing. This system detects the best discriminative features and estimates the best SVM kernel parameters in a fully automatic way. Effectiveness of the proposed detection method is shown in comparison with the conventional parameter optimization methods discussed in literature like grid search method, neural classifiers like Probabilistic Neural Network (PNN), fuzzy k-nearest neighbor classifier (FkNN) and hence proved that the proposed method is reliable as it produces consistently better results.