HB 2313 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, further providing for recovery of advertising expenses.

PRINTER'S NO.   3069

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2313
                                                Session of
                                                  2026

     INTRODUCED BY RABB, FIEDLER, WAXMAN, HILL-EVANS, OTTEN,
        SHUSTERMAN, BOROWSKI, PASHINSKI AND CIRESI, MARCH 24, 2026

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, MARCH 24, 2026


                                       AN ACT
 1   Amending Title 66 (Public Utilities) of the Pennsylvania
 2      Consolidated Statutes, in rates and distribution systems,
 3      further providing for recovery of advertising expenses.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Section 1316 heading, (a) introductory paragraph,
 7   (c) and (d) of Title 66 of the Pennsylvania Consolidated
 8   Statutes are amended to read:
 9   § 1316.   Recovery of [advertising] lobbying and political
10                activity expenses.
11      (a)    General rule.--For purposes of rate determinations, no
12   public utility may charge to its consumers as a permissible
13   operating expense for ratemaking purposes any direct or indirect
14   expenditure by the utility for [political advertising] lobbying
15   or political activities or prohibited costs. The commission
16   shall also disallow as operating expense for ratemaking purposes
17   expenditures for other advertising, unless and only to the
18   extent that the commission finds that such advertising is
 1   reasonable and meets one or more of the following criteria:
 2            * * *
 3      (c)   Filing of information and materials.--
 4            (1)     Whenever a public utility proposes a change in rates
 5      under section 1308 (relating to voluntary changes in rates),
 6      the public utility shall file with the commission a listing
 7      of each type of advertising prepared, distributed or
 8      presented by the public utility or to be prepared,
 9      distributed or presented by the public utility during the
10      test year utilized by the public utility in discharging its
11      burden of proof, and a listing of each type of advertising
12      prepared, distributed or presented by the public utility
13      during the year immediately preceding the test year, as well
14      as an accounting of the expenditures by the public utility
15      for such advertising, to the extent such advertising is
16      proposed to be included as operating expense for ratemaking
17      purposes.
18            (2)   Not later than December 31 of each year, a public
19      utility with more than 75,000 customers in this Commonwealth
20      shall file with the commission a report itemizing the costs
21      of lobbying or political activities. The report shall
22      include:
23                  (i)    Costs spent by the parent company or an
24            affiliate of the public utility that are directly billed
25            or allocated to the public utility.
26                  (ii)    A list of the title, job description and salary
27            of any employee of the public utility who performed work
28            associated with the lobbying or political activity,
29            including the hours attributed to the work.
30                  (iii)    A list of the title, job description and

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 1            salary of any employee of the parent company or affiliate
 2            of the public utility who performed work associated with
 3            the lobbying or political activity, including the hours
 4            attributed to the work that were directly billed or
 5            allocated to the public utility.
 6                  (iv)   A list of payments that the public utility made
 7            to all third-party vendors for expenses associated with
 8            the lobbying or political activity, including unredacted
 9            billing amounts, billing dates, payees and an explanation
10            of each expenditure in detail sufficient to describe the
11            purpose of the cost.
12                  (v)    Any other information the commission considers
13            relevant.
14            (3)   The filing requirements imposed by this subsection
15      shall not be construed to limit the right of any party to
16      discovery under this or any other provision of law.
17      (d)   [Definition.--As used in this section the term
18   "political advertising" means any advertising] Definitions.--As
19   used in this section, the following words and phrases shall have
20   the meanings given to them in this subsection unless the context
21   clearly indicates otherwise:
22      "Lobbying or political activity."       Action taken at the State
23   or municipal government level in connection with:
24            (1)   influencing legislation;
25            (2)   participating or intervening in a political campaign
26      on behalf of or in opposition to a candidate for public
27      office;
28            (3)   an attempt to influence a segment of the general
29      public with respect to an election, legislative matter,
30      executive decision or referendum;

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 1          (4)    political advertising; or
 2          (5)    supporting public policy research, analysis,
 3      preparation or planning.
 4      "Political advertising."   Advertising for the purpose of
 5   influencing public opinion with respect to any legislative,
 6   administrative action or candidate election or with respect to
 7   any controversial issue to be decided by public voting. The term
 8   includes money spent for lobbying but not money spent for
 9   appearances before regulatory or other governmental bodies in
10   connection with a public utility's existing or proposed
11   operations.
12      "Prohibited costs."   An expense for any of the following:
13          (1)    membership, dues, sponsorships or contributions to a
14      business or industry trade association, group or related
15      entity exempt from taxation under 26 U.S.C. § 501 (relating
16      to exemption from tax on corporations, certain trusts, etc.);
17          (2)    unless approved or ordered by the commission,
18      advertising, marketing, communication or other related
19      expense identified by the commission that seeks to influence
20      public opinion or create goodwill toward a public utility;
21          (3)    travel, lodging or food and beverage expense for the
22      board of directors and officers of a public utility or the
23      board of directors and officers of a parent company of a
24      public utility;
25          (4)    entertainment or gifts;
26          (5)    any owned, leased or chartered aircraft for the
27      board of directors and officers of a public utility or the
28      parent company of a public utility;
29          (6)    investor relations; or
30          (7)    any legal proceedings or base rate case proceedings.

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1     Section 2.    This act shall take effect in 60 days.




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