Rate moderation plans - cushioning ''rate shock''

The Pennsylvania Public Utility Commission recently agreed to consider permitting a phased recovery of nuclear plant costs as a means of moderating the abrupt increase in rates caused by traditional rate-making treatment of newly constructed plant. This article discusses the mechanics of three types of plan and their reception by state regulators: 1 post-in-service date rates base phase-ins, 2 staged rate increases spanning the latter years of construction and the early years of operations, and 3 ''negatives'' or ''mirror'' construction work in progress