PRINTER'S NO. 83
No. 85 Session of 1997
INTRODUCED BY HOLL, JANUARY 21, 1997
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 21, 1997
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for lobbying expenses.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Section 1316 of Title 66 of the Pennsylvania
6 Consolidated Statutes is amended to read:
7 § 1316. Recovery of advertising or lobbying expenses.
8 (a) General rule.--For purposes of rate determinations, no
9 public utility may charge to its consumers as a permissible
10 operating expense for ratemaking purposes any direct or indirect
11 expenditure by the utility for political advertising. Expenses
12 of a public utility which are incurred by the public utility for
13 advertising for the actual or apparent purpose of soliciting the
14 initial or additional purchase of its services, for public
15 relations or goodwill or for the costs of lobbying as lobbying
16 is defined in the act of September 30, 1961 (P.L.1778, No.712),
17 known as the Lobbying Registration and Regulation Act, may not
1 be considered as valid expenses by the public utility or the
2 commission in establishing, changing or approving rates for the
3 public utility. The commission shall also disallow as operating
4 expense for ratemaking purposes expenditures for other
5 advertising, unless and only to the extent that the commission
6 finds that such advertising is reasonable and meets one or more
7 of the following criteria:
8 (1) Is required by law or regulation.
9 (2) Is in support of the issuance, marketing or
10 acquisition of securities or other forms of financing.
11 (3) Encourages energy independence by promoting the wise
12 development and use of domestic sources of coal, oil or
13 natural gas and does not promote one method of generating
14 electricity as preferable to other methods of generating
15 electricity.
16 (4) Provides important information to the public
17 regarding safety, rate changes, means of reducing usage or
18 bills, load management or energy conservation.
19 (5) Provides a direct benefit to ratepayers.
20 (6) Is for the promotion of community service or
21 economic development.
22 (b) Charging expenses to stockholders.--Any direct or
23 indirect expenditure by a public utility for political
24 advertising, or any other advertising not meeting the criteria
25 set forth in subsection (a), shall be charged to its
26 stockholders and shall not be included as an operating expense
27 for ratemaking purposes.
28 (c) Filing of information and materials.--Whenever a public
29 utility proposes a change in rates under section 1308 (relating
30 to voluntary changes in rates), the public utility shall file
19970S0085B0083 - 2 -
1 with the commission a listing of each type of advertising
2 prepared, distributed or presented by the public utility or to
3 be prepared, distributed or presented by the public utility
4 during the test year utilized by the public utility in
5 discharging its burden of proof, and a listing of each type of
6 advertising prepared, distributed or presented by the public
7 utility during the year immediately preceding the test year, as
8 well as an accounting of the expenditures by the public utility
9 for such advertising, to the extent such advertising is proposed
10 to be included as operating expense for ratemaking purposes. The
11 filing requirements imposed by this subsection shall not be
12 construed to limit the right of any party to discovery under
13 this or any other provision of law.
14 (d) Definition.--As used in this section, the term
15 "political advertising" means any advertising for the purpose of
16 influencing public opinion with respect to any legislative,
17 administrative action or candidate election or with respect to
18 any controversial issue to be decided by public voting. The term
19 includes money spent for lobbying but not money spent for
20 appearances before regulatory or other governmental bodies in
21 connection with a public utility's existing or proposed
22 operations.
23 Section 2. This act shall take effect in 60 days.
L17L66WMB/19970S0085B0083 - 3 -