01-29 08:56 1st Sub. (Green) S.B. 153
Nate Blouin proposes the following substitute bill:
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Public Utility Expenditures Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nate Blouin
House Sponsor:
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LONG TITLE
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General Description:
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This bill prohibits a qualified utility from recovering in rates expenses related to
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advertising, lobbying, and political activities.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ prohibits a qualified utility from recovering in rates certain advertising, lobbying, and
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political influence expenses;
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▸ requires a qualified utility to file an annual report detailing prior year expenses related to
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advertising, lobbying, and political activities;
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▸ specifies information that must be included in the annual report; and
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▸ establishes penalties for a qualified utility that improperly recovers prohibited expenses.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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54-4-43, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 54-4-43 is enacted to read:
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54-4-43 . Cost recovery prohibitions.
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(1) As used in this section:
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(a) "Advertising" means publishing, disseminating, soliciting, or circulating information
1st Sub. S.B. 153 1st Sub. (Green) S.B. 153 01-29 08:56
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in written, online, video, or audio form with the intent to:
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(i) induce a person to purchase or use a product, service, or business;
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(ii) promote a business's brand; or
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(iii) influence public opinion on legislative, administrative, electoral, or other
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governmental matter.
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(b) "Advertising" does not include:
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(i) advertising required by law, regulation, or rule;
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(ii) advertising directly related to a program regarding income-based rates, energy
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conservation, energy efficiency, or renewable energy offerings available to
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customers;
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(iii) messaging regarding service interruptions, safety measures, or emergency
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conditions; or
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(iv) advertising regarding employment opportunities with the qualified utility.
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(c) "Expenses" means any payment made in the form of compensation that a qualified
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utility pays to an external firm, a corporate affiliate, or an employee of the qualified
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utility.
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(d) "Lobbying" means directly, or through solicitation of others, communicating with an
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individual who is in a position to make a policy decision, in order to influence the
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outcome of a local, state, or federal legislation, regulation, or administrative rule.
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(e) "Political activities" means activities that attempt to influence public opinion or sway
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the outcome of legislation, regulation, administrative rule, ballot initiative,
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referendum, or other electoral matter.
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(f) "Qualified utility" means a large-scale electric utility or a large-scale natural gas
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utility.
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(2) A qualified utility may not recover in rates:
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(a) advertising and public relations expenses that do not relate to a program or purpose
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authorized by statute or commission rule;
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(b) expenses for:
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(i) promoting or improving the qualified utility's brand;
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(ii) influencing public opinion about the qualified utility; or
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(iii) lobbying or political activities;
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(c) expenses for organizational or membership dues, or other contributions, to an
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organization, association, institution, corporation, or other entity that:
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(i) engages in lobbying or political activities; or
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(ii) engages in an activity with a similar purpose to lobbying and political activities; or
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(d) contributions to:
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(i) a political candidate;
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(ii) a campaign committee; or
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(iii) another similar political expense.
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(3) A qualified utility shall file an annual report with the commission, by March 1 of each
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year, detailing the prior calendar year's expenses related to advertising, lobbying, and
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political activities.
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(4) The report described in Subsection (3) shall include:
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(a) an itemization of all expenses that the qualified utility incurred related to advertising,
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lobbying, and political activities, including expenditures made directly by the
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qualified utility or through an affiliate organization, that would have been charged to
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ratepayers but for the prohibitions in this section;
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(b) the total number of employees of the qualified utility that are engaged in advertising,
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lobbying, political activities, or otherwise attempting to influence public opinion
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about the qualified utility;
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(c) for each employee described in Subsection (4)(b):
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(i) the employee's job title and responsibilities;
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(ii) the business unit in which the employee works; and
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(iii) the percentage of the employee's salary charged to ratepayers; and
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(d) any other disclosures deemed relevant by the commission regarding advertising,
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lobbying, or political expenses.
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(5) If the commission determines that a qualified utility violates this section by recovering
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expenses prohibited in Subsection (2), the commission shall:
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(a) require the qualified utility to reimburse ratepayers for the amount of expenses
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improperly recovered, plus interest; and
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(b) assess a non-recoverable penalty to the qualified utility in an amount that is not less
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than the total amount of the cost that the qualified utility improperly recovered.
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Section 2. Effective Date.
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This bill takes effect on May 7, 2025.
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