(1) The commission shall ensure that regulated electric and gas utilities do not use
ratepayer funds to subsidize nonregulated activities.
(2) A utility shall not recover the following costs from its customers, whether
as part of proposed base rate costs, a rider, or other charges:
(a) More than fifty percent of annual total compensation or of expense
reimbursement for members of the board of directors of the utility;
(b) Tax penalties or fines issued against the utility;
(c) Investor-relation expenses;
(d) Advertising and public relations expenses that do not directly relate to a
purpose or program that is required or authorized under statute or commission rule
or order. Advertising and public relations expenses for which cost recovery is
prohibited include:
(I) Communications to promote or improve the utility's brand;
(II) Expenses for the purpose of influencing public opinion about the utility;
and
(III) Expenses intended to create good will toward the utility from the
general public.
(e) Expenses for lobbying or other activities meant to influence the outcome
of any local, state, or federal legislation, ordinance, resolution, or ballot measure;
(f) Charitable giving expenses, including contributions to organizations
qualified under section 501 (c)(3) or 501 (c)(4) of the federal Internal Revenue Code
of 1986, 26 U.S.C. sec. 501, as amended;
(g) Organizational or membership dues, or other contributions, to any
organization, association, institution, corporation, or other entity that engages in
lobbying or other similar activities intended to influence the outcome of any local,
state, or federal legislation, ordinance, resolution, rule, ballot measure, or other
regulatory decision;
(h) Contributions to political candidates, campaign committees, issue
committees, or independent expenditure committees or similar political expenses;
(i) Travel, lodging, food, and beverage expenses for the utility's board of
directors and officers;
(j) Entertainment or gift expenses;
(k) Expenses related to any owned, leased, or chartered aircraft for the
utility's board of directors and officers; or
(l) Expenses related to marketing and administration or customer service for
unregulated products or services provided or sold by the utility or the utility's
affiliates.
(3) Subsections (2)(g) and (2)(h) of this section shall not be construed to
apply to a utility employee's or contract worker's activities resulting from any
voluntary dues deductions that are processed through standard payroll processes.
(4) (a) Notwithstanding penalties set forth in article 7 of this title 40, if the
commission determines that a utility improperly recovered costs pursuant to
subsection (2) of this section, the commission may assess a nonrecoverable penalty
against the utility.
(b) In addition to assessing a nonrecoverable penalty against a utility
pursuant to subsection (4)(a) of this section, the commission shall order the utility
to refund the amount improperly recovered pursuant to subsection (2) of this
section, plus interest, to customers.
(5) The commission shall require a utility to file an annual report with the
commission to ensure the utility's compliance with this section. The report must
include the purpose, payee, and amount of any expenses associated with the costs
and activities that are not permitted to be recovered from customers pursuant to
this section.
(6) As used in this section, unless the context otherwise requires:
(a) (I) Advertising means the act of publishing, disseminating, soliciting, or
circulating written, online, video, or audio communication intended to induce a
person to patronize a product, service, business, or industry; promote a business's
brand; otherwise emphasize desirable qualities about a product, service, business,
or industry; or influence public opinion with respect to legislative, administrative, or
electoral matters.
(II) Advertising does not include:
(A) Advertising required or authorized by law, regulation, or order;
(B) Advertising directly related to a purpose or program regarding income-based service, special rates, pilot programs, energy conservation, energy efficiency,
beneficial electrification, renewable energy, transportation electrification, or other
consumer education information;
(C) Advertising regarding service interruptions, safety measures, or
emergency conditions; or
(D) Advertising concerning employment opportunities with the utility.
(b) Aircraft has the meaning set forth in section 41-2-101 (1).
(c) Base rate has the meaning set forth in section 40-3-102.5 (1)(d)(I).
(d) Electric utility means an investor-owned electric utility in the state.
(e) Expenses means any payment made in the form of compensation that a
utility pays to an external firm, a corporate affiliate, or an employee of the utility.
(f) Gas utility means an investor-owned gas utility in the state.
(g) Lobbying means directly, or through the solicitation of others,
communicating with a person that is in a position to make a policy decision in order
to influence the outcome of local, state, or federal legislation.
(h) Rate case means a formal hearing of the commission to determine if the
base rates of an electric utility or gas utility are just and reasonable pursuant to
section 40-3-101.
(i) Rider means a charge added to a utility bill to recover a specific cost
that is not part of the base rate.
(j) Utility means an investor-owned electric utility or gas utility in the state.