Phantom Tax Reform and Least Cost Electric Energy Planning Act of 1984

Phantom Tax Reform and Least Cost Electric Energy Planning Act of 1984 - Title I: State Regulated Electric Utilities - Amends the Public Utility Regulatory Policies Act of 1978 to provide that a State regulatory authority may hold hearings with respect to the adoption of a least system cost plan (a plan for meeting the demand for electric energy services which is reliable and which meets or reduces the electric power demand of retail consumers at an estimated incremental system cost no greater than that of the least-cost similarly reliable and available alternative measures) for the electric utilities with respect to which the State regulatory authority has ratemaking authority. Authorizes a State regulatory authority which adopts a least system cost plan for an electric utility to approve or establish a rate schedule for such utility which provides for the ratemaking treatment of the investment tax credit and the depreciation expenses and accelerated cost recovery deductions in a manner which will further the purposes of the plan. Provides that such treatment shall apply in lieu of Federal income tax provisions regarding the treatment of such amounts for ratemaking purposes.

Title II: Federally Regulated Electric Utilities - Amends the Federal Power Act to authorize the Federal Energy Regulatory Commission to conduct hearings with respect to the adoption and implementation of a least system cost plan for electric utilities which are subject to the Commission's jurisdiction. Provides that if the Commission adopts such a plan for an electric utility, the Commission may, in approving or establishing a rate schedule for such utility, provide for such ratemaking treatment of the investment tax credit and of depreciation expenses and accelerated cost recovery deductions as will further the purposes of the plan and provide a current return to the ratepayers of the tax benefits attributable to such credit or deductions which exceeds the current return available under a specified adjustment to the methods for determining such credit and deductions. Provides that such treatment shall apply in lieu of Federal income tax provisions regarding the treatment of such amounts for ratemaking purposes.

Title III: Investment Tax Credit and Depreciation - Makes technical amendments to the Internal Revenue Code in conformity with this Act.