Powerline Communication is a new trend in communication. With the use of powerlines to transmit data, PLC technology allows combining effectively communication services and energy services. However, noise and attenuation of signal on powerline are main cause of difficulties in implementi.ng PLC system. In this paper, based on analysis of the effects of interference and'signal attenuation on the power line, the authors proposed suitable coding and modulation. These techniques are applied in Automated Meter Reading system with simple design and low price.