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.

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

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

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

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 1             (6)   investor relations.
 2      Section 2.     Title 66 is amended by adding a section to read:
 3   § 2816.    Membership in regional transmission organization.
 4      (a)    Membership.--An electric distribution company shall be a
 5   member of a regional transmission organization.
 6      (b)    Filing of report.--On or before February 1 each year, an
 7   electric distribution company shall submit to the commission a
 8   report on any recorded vote cast by the electric distribution
 9   company or, subject to subsection (c), an affiliate of the
10   electric distribution company at a meeting of a regional
11   transmission organization during the immediately preceding
12   calendar year.
13      (c)    Contents of report.--The report under subsection (b)
14   shall include:
15             (1)   all recorded votes cast by the electric distribution
16      company, regardless of whether the vote is otherwise
17      disclosed;
18             (2)   all votes cast by an affiliate of the electric
19      distribution company, if the electric distribution company
20      itself did not vote on the matter; and
21             (3)   a brief description explaining how each vote cast by
22      the electric distribution company or its affiliate is in the
23      interest of the public.
24      (d)    Definitions.--As used in this section, the following
25   words and phrases shall have the meanings given to them in this
26   subsection unless the context clearly indicates otherwise:
27      "Affiliate."     A corporation or person with an affiliated
28   interest as defined in section 2101 (relating to definition of
29   affiliated interest).
30      "Meeting."     A committee, user group, task force or other part

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 1   of a regional transmission organization in which votes are
 2   taken.
 3      "Recorded vote."    A vote that is tabulated, either
 4   individually or as part of a sector, for any purpose at a
 5   meeting, regardless of:
 6            (1)   whether the vote represents a final position of any
 7      person casting the vote; or
 8            (2)   the decision-making authority of those voting.
 9      "Regional transmission organization."    An entity that
10   qualifies as a regional transmission organization under 18 CFR
11   35.34 (relating to regional transmission organizations).
12      Section 3.    This act shall take effect in 60 days.




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