PRINTER'S NO. 627
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.616
Session of
2025
INTRODUCED BY COMITTA, CAPPELLETTI, KEARNEY, COSTA, KANE,
SCHWANK, MILLER, MUTH, L. WILLIAMS AND FLYNN, APRIL 11, 2025
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
APRIL 11, 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 of Title 66 of the Pennsylvania
Consolidated Statutes is 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
extent that the commission finds that such advertising is
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19 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.--
(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
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30 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;
(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
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30 (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, a legislative matter, an
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 other governmental bodies in
connection with a public utility's existing or proposed
operations.
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30 "Prohibited costs." An expense for any of the following:
(1) membership, dues, sponsorships or contributions to a
business or industry trade association, group or related
entity exempt from taxation under section 501 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501);
(2) unless approved or ordered by the commission,
advertising, marketing, communication or other related
expense identified by the commission that seeks to influence
public opinion or create goodwill toward a public utility;
(3) travel, lodging or food and beverage expense for the
board of directors and officers of a public utility or the
board of directors and officers of a parent company of a
public utility;
(4) entertainment or gifts;
(5) any owned, leased or chartered aircraft for the
board of directors and officers of a public utility or the
parent company of a public utility; or
(6) investor relations.
Section 2. Title 66 is amended by adding a section to read:
§ 2816. Membership in regional transmission organization.
(a) General rule.--An electric distribution company shall be
a member of a regional transmission organization.
(b) Filing of report.--On or before February 1 each year, an
electric distribution company shall submit to the commission a
report on any recorded vote cast by the electric distribution
company or, subject to subsection (c), an affiliate of the
electric distribution company at a meeting of a regional
transmission organization during the immediately preceding
calendar year.
(c) Contents of report.--The report under subsection (b)
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30 shall include:
(1) all recorded votes cast by the electric distribution
company, regardless of whether the vote is otherwise
disclosed;
(2) all votes cast by an affiliate of the electric
distribution company, if the electric distribution company
itself did not vote on the matter; and
(3) a brief description explaining how each vote cast by
the electric distribution company or its affiliate is in the
interest of the public.
(d) 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:
"Affiliate." A corporation or person with an affiliated
interest as defined in section 2101 (relating to definition of
affiliated interest).
"Meeting." A committee, user group, task force or other part
of a regional transmission organization in which votes are
taken.
"Recorded vote." A vote that is tabulated, either
individually or as part of a sector, for any purpose at a
meeting, regardless of:
(1) whether the vote represents a final position of any
person casting the vote; or
(2) the decision-making authority of those voting.
"Regional transmission organization." An entity that
qualifies as a regional transmission organization under 18 CFR
35.34 (relating to regional transmission organizations).
Section 3. This act shall take effect in 60 days.
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