In this paper, we introduce a new method for detecting and estimating faults on a power line using the time-frequency domain reflectometry system. The system rests upon time-frequency signal analysis and uses a chirp signal which is multiplied by Gaussian envelope. The chirp signal is used as a reference signal, and we can get the reflected signal from a fault on a wire. To detect and estimate faults, we analyze the reflected signal by Wigner time-frequency distribution function and normalized time-frequency cross correlation function. In this paper we design an optimal reference signal for power line and implement a system for estimating fault distance on a power line with the TFDR implemented by PXI equipments. This approach is verified by some experiments with HIV 2.25mm power lines.