This paper presents a new method for online determination of the Thèvenin equivalent parameters of a power system at a given node using the local PMU measurements at that node. The method takes into account the measurement errors and the changes in the system side. An analysis of the effects of changes in system side is carried out on a simple two-bus system to gain an insight of the effect of system side changes on the estimated Thévenin equivalent parameters. The proposed method uses voltage and current magnitudes as well as active and reactive powers; thus avoiding the effect of phase angle drift of the PMU and the need to synchronize measurements at different instances to the same reference. Applying the method to the IEEE 30-bus test system has shown its ability to correctly determine the Thévenin equivalent even in the presence of measurement errors and/or system side changes.