PRIOR PRINTER'S NO. 495 PRINTER'S NO. 3317
No. 434 Session of 1983
INTRODUCED BY RICHARDSON, MANDERINO, PRESTON, WAMBACH,
CALTAGIRONE, KUKOVICH, CARN, PISTELLA AND EVANS,
MARCH 15, 1983
AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 27, 1984
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, further providing for the disallowance
3 of certain advertising expenses from rate determinations.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 66 of the Pennsylvania Consolidated
7 Statutes is amended by adding a section to read:
8 § 1316. Allowance of advertising expenses. <--
9 (a) Expenses not allowed.--Expenses of a public utility
10 which are incurred for advertising in any manner for the actual
11 or apparent purpose of soliciting the initial or additional
12 purchase of its services, or for public relations or good will,
13 shall be disallowed by the commission for purposes of
14 determining a just and reasonable rate of the public utility.
15 (b) Expenses allowed--Advertising expenses of a public
16 utility which are incurred for the actual purpose and with the
17 effect of informing customers of utility services available to
1 them without charge, informing them of their rights, supplying
2 them with information necessary to understand their bills,
3 assisting them to conserve resources, encouraging more efficient
4 off-peak use of the utility service and similar advertising
5 calculated to primarily benefit the customers shall be allowed
6 by the commission in determining a just and reasonable rate to
7 the extent that the advertising as a whole is directed to that
8 purpose.
9 Section 2. This act shall take effect in 60 days.
10 § 1317. UTILITY EXPENSES FOR PROVIDING PUBLIC INFORMATION. <--
11 (A) SPECIFIC EXPENDITURES DISALLOWED.--NOTWITHSTANDING ANY
12 OTHER PROVISION OF LAW, IN NO CASE MAY A PUBLIC UTILITY INCLUDE
13 IN ITS RATES ANY EXPENDITURES FOR THE PREPARATION, DISTRIBUTION
14 OR PRESENTATION OF ANY PUBLIC INFORMATION WHICH PROMOTES ONE
15 METHOD OF GENERATING ELECTRICITY AS PREFERABLE TO OTHER METHODS
16 OF GENERATING ELECTRICITY. NOTWITHSTANDING ANY OTHER PROVISION
17 OF LAW, IN NO CASE MAY A PUBLIC UTILITY INCLUDE IN ITS RATES ANY
18 PAYMENT OR CONTRIBUTION, OR PART THEREOF, MADE BY THE PUBLIC
19 UTILITY TO ANY OTHER ORGANIZATION OR INDIVIDUAL AND USED BY THAT
20 OTHER ORGANIZATION OR INDIVIDUAL FOR THE PREPARATION,
21 DISTRIBUTION OR PRESENTATION OF ANY PUBLIC INFORMATION WHICH
22 PROMOTES ONE METHOD OF GENERATING ELECTRICITY AS PREFERABLE TO
23 OTHER METHODS OF GENERATING ELECTRICITY.
24 (B) OTHER PUBLIC INFORMATION EXPENDITURES.--THE FACT THAT A
25 SPECIFIC EXPENDITURE IS NOT DISALLOWED BY SUBSECTION (A) SHALL
26 NOT BE CONSTRUED AS A PRESUMPTION THAT THE EXPENDITURE SHALL, OR
27 SHALL NOT, BE INCLUDED IN THE RATES OF A PUBLIC UTILITY UNDER
28 OTHER PROVISIONS OF THIS TITLE.
29 (C) APPLICABILITY.--PUBLIC INFORMATION PREPARED, DISTRIBUTED
30 OR PRESENTED TO ENCOURAGE ECONOMIC OR INDUSTRIAL DEVELOPMENT IN
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1 THIS COMMONWEALTH SHALL NOT BE SUBJECT TO THIS SECTION, BUT
2 SHALL BE SUBJECT TO OTHER PROVISIONS OF THIS TITLE.
3 (D) DEFINITION.--AS USED IN THIS SECTION THE TERM "PUBLIC
4 INFORMATION" MEANS ANY INFORMATION, OPINION, ARGUMENT, PROGRAM
5 OR ADVERTISING, DISTRIBUTED OR PRESENTED BY A PUBLIC UTILITY BY
6 TELEVISION, RADIO, FILMS, PRINTED MATERIAL, SPEECHES,
7 EDUCATIONAL MATERIALS AND CURRICULA AND LOBBYING.
8 SECTION 2. THIS ACT SHALL BE APPLICABLE TO ALL PROCEEDINGS
9 INITIATED BEFORE THE PUBLIC UTILITY COMMISSION ON AND AFTER THE
10 EFFECTIVE DATE OF THIS ACT.
11 SECTION 3. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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