Pennsylvania HB 782: An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, further providing for recovery of advertising expenses; and, in restructuring of electric utility industry, providing for membership in regional transmission organization.

Bill Text

PRINTER'S NO. 803
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 782
Session of
2025
INTRODUCED BY RABB, WEBSTER, WAXMAN, FREEMAN, MADDEN, SANCHEZ,
PIELLI, DONAHUE AND MALAGARI, MARCH 3, 2025
REFERRED TO COMMITTEE ON ENERGY, MARCH 3, 2025
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
further providing for recovery of advertising expenses; and,
in restructuring of electric utility industry, providing for
membership in regional transmission organization.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1316 heading, (a) introductory paragraph,
(c) and (d) of Title 66 of the Pennsylvania Consolidated
Statutes are amended to read:
§ 1316. Recovery of [advertising] lobbying and political
activity 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] lobbying
or political activities or prohibited costs. The commission
shall also disallow as operating expense for ratemaking purposes
expenditures for other advertising, unless and only to the
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extent that the commission finds that such advertising is
reasonable and meets one or more of the following criteria:
* * *
(c) Filing of information and materials.--
(1) 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.
(2) Not later than December 31 of each year, a public
utility with more than 75,000 customers in this Commonwealth
shall file with the commission a report itemizing the costs
of lobbying or political activities. The report shall
include:
(i) costs spent by the parent company or an
affiliate of the public utility that are directly billed
or allocated to the public utility;
(ii) a list of the title, job description and salary
of any employee of the public utility who performed work
associated with the lobbying or political activity,
including the hours attributed to the work;
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(iii) a list of the title, job description and
salary of any employee of the parent company or affiliate
of the public utility who performed work associated with
the lobbying or political activity, including the hours
attributed to the work that were directly billed or
allocated to the public utility;
(iv) a list of payments that the public utility made
to all third-party vendors for expenses associated with
the lobbying or political activity, including unredacted
billing amounts, billing dates, payees and an explanation
of each expenditure in detail sufficient to describe the
purpose of the cost; and
(v) any other information the commission considers
relevant.
(3) 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] Definitions.--As
used in this section, the following words and phrases shall have
the meanings given to them in this subsection unless the context
clearly indicates otherwise:
"Lobbying or political activity." Action taken at the State
or municipal government level in connection with:
(1) influencing legislation;
(2) participating or intervening in any political
campaign on behalf of or in opposition to a candidate for
public office;
(3) an attempt to influence a segment of the general
public with respect to an election, legislative matter,
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executive decision or referendum;
(4) political advertising; or
(5) supporting public policy research, analysis,
preparation or planning.
"Political advertising." 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