2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 13 - Rates and Rate Making
1316 - Recovery of advertising expenses.

     § 1316.  Recovery of advertising expenses.
        (a)  General rule.--For purposes of rate determinations, no
     public utility may charge to its consumers as a permissible
     operating expense for ratemaking purposes any direct or indirect
     expenditure by the utility for political advertising. The
     commission shall also disallow as operating expense for
     ratemaking purposes expenditures for other advertising, unless
     and only to the extent that the commission finds that such
     advertising is reasonable and meets one or more of the following
     criteria:
            (1)  Is required by law or regulation.
            (2)  Is in support of the issuance, marketing or
        acquisition of securities or other forms of financing.
            (3)  Encourages energy independence by promoting the wise
        development and use of domestic sources of coal, oil or
        natural gas and does not promote one method of generating
        electricity as preferable to other methods of generating
        electricity.
            (4)  Provides important information to the public
        regarding safety, rate changes, means of reducing usage or
        bills, load management or energy conservation.
            (5)  Provides a direct benefit to ratepayers.
            (6)  Is for the promotion of community service or
        economic development.
        (b)  Charging expenses to stockholders.--Any direct or
     indirect expenditure by a public utility for political
     advertising, or any other advertising not meeting the criteria
     set forth in subsection (a), shall be charged to its
     stockholders and shall not be included as an operating expense
     for ratemaking purposes.
        (c)  Filing of information and materials.--Whenever a public
     utility proposes a change in rates under section 1308 (relating
     to voluntary changes in rates), the public utility shall file
     with the commission a listing of each type of advertising
     prepared, distributed or presented by the public utility or to
     be prepared, distributed or presented by the public utility
     during the test year utilized by the public utility in
     discharging its burden of proof, and a listing of each type of
     advertising prepared, distributed or presented by the public
     utility during the year immediately preceding the test year, as
     well as an accounting of the expenditures by the public utility
     for such advertising, to the extent such advertising is proposed
     to be included as operating expense for ratemaking purposes. The
     filing requirements imposed by this subsection shall not be
     construed to limit the right of any party to discovery under
     this or any other provision of law.
        (d)  Definition.--As used in this section the term "political
     advertising" means any advertising for the purpose of
     influencing public opinion with respect to any legislative,
     administrative action or candidate election or with respect to
     any controversial issue to be decided by public voting. The term
     includes money spent for lobbying but not money spent for
     appearances before regulatory or other governmental bodies in
     connection with a public utility's existing or proposed
     operations.
     (Mar. 7, 1984, P.L.104, No.22, eff. 60 days; July 10, 1986,
     P.L.1238, No.114, eff. imd.)