SB 616 — 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.   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
 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 of Title 66 of the Pennsylvania
 9   Consolidated Statutes is amended to read:
10   § 1316.   Recovery of [advertising] lobbying and political
11                activity expenses.
12      (a)    General rule.--For purposes of rate determinations, no
13   public utility may charge to its consumers as a permissible
14   operating expense for ratemaking purposes any direct or indirect
15   expenditure by the utility for [political advertising] lobbying
16   or political activities or prohibited costs. The commission
17   shall also disallow as operating expense for ratemaking purposes
18   expenditures for other advertising, unless and only to the
19   extent that the commission finds that such advertising is
 1   reasonable and meets one or more of the following criteria:
 2            (1)   Is required by law or regulation.
 3            (2)   Is in support of the issuance, marketing or
 4      acquisition of securities or other forms of financing.
 5            (3)   Encourages energy independence by promoting the wise
 6      development and use of domestic sources of coal, oil or
 7      natural gas and does not promote one method of generating
 8      electricity as preferable to other methods of generating
 9      electricity.
10            (4)   Provides important information to the public
11      regarding safety, rate changes, means of reducing usage or
12      bills, load management or energy conservation.
13            (5)   Provides a direct benefit to ratepayers.
14            (6)   Is for the promotion of community service or
15      economic development.
16      (b)   Charging expenses to stockholders.--Any direct or
17   indirect expenditure by a public utility for political
18   advertising, or any other advertising not meeting the criteria
19   set forth in subsection (a), shall be charged to its
20   stockholders and shall not be included as an operating expense
21   for ratemaking purposes.
22      (c)   Filing of information and materials.--
23            (1)   Whenever a public utility proposes a change in rates
24      under section 1308 (relating to voluntary changes in rates),
25      the public utility shall file with the commission a listing
26      of each type of advertising prepared, distributed or
27      presented by the public utility or to be prepared,
28      distributed or presented by the public utility during the
29      test year utilized by the public utility in discharging its
30      burden of proof, and a listing of each type of advertising

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 1    prepared, distributed or presented by the public utility
 2    during the year immediately preceding the test year, as well
 3    as an accounting of the expenditures by the public utility
 4    for such advertising, to the extent such advertising is
 5    proposed to be included as operating expense for ratemaking
 6    purposes.
 7        (2)     Not later than December 31 of each year, a public
 8    utility with more than 75,000 customers in this Commonwealth
 9    shall file with the commission a report itemizing the costs
10    of lobbying or political activities. The report shall
11    include:
12               (i)    costs spent by the parent company or an
13        affiliate of the public utility that are directly billed
14        or allocated to the public utility;
15               (ii)    a list of the title, job description and salary
16        of any employee of the public utility who performed work
17        associated with the lobbying or political activity,
18        including the hours attributed to the work;
19               (iii)    a list of the title, job description and
20        salary of any employee of the parent company or affiliate
21        of the public utility who performed work associated with
22        the lobbying or political activity, including the hours
23        attributed to the work that were directly billed or
24        allocated to the public utility;
25               (iv)    a list of payments that the public utility made
26        to all third-party vendors for expenses associated with
27        the lobbying or political activity, including unredacted
28        billing amounts, billing dates, payees and an explanation
29        of each expenditure in detail sufficient to describe the
30        purpose of the cost; and

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 1                  (v)   any other information the commission considers
 2            relevant.
 3            (3)   The filing requirements imposed by this subsection
 4      shall not be construed to limit the right of any party to
 5      discovery under this or any other provision of law.
 6      (d)   [Definition.--As used in this section the term
 7   "political advertising" means any advertising] Definitions.--As
 8   used in this section, the following words and phrases shall have
 9   the meanings given to them in this subsection unless the context
10   clearly indicates otherwise:
11      "Lobbying or political activity."       Action taken at the State
12   or municipal government level in connection with:
13            (1)   influencing legislation;
14            (2)   participating or intervening in any political
15      campaign on behalf of or in opposition to a candidate for
16      public office;
17            (3)   an attempt to influence a segment of the general
18      public with respect to an election, a legislative matter, an
19      executive decision or referendum;
20            (4)   political advertising; or
21            (5)   supporting public policy research, analysis,
22      preparation or planning.
23      "Political advertising."      Advertising for the purpose of
24   influencing public opinion with respect to any legislative,
25   administrative action or candidate election or with respect to
26   any controversial issue to be decided by public voting. The term
27   includes money spent for lobbying but not money spent for
28   appearances before regulatory or other governmental bodies in
29   connection with a public utility's existing or proposed
30   operations.

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 1      "Prohibited costs."     An expense for any of the following:
 2             (1)   membership, dues, sponsorships or contributions to a
 3      business or industry trade association, group or related
 4      entity exempt from taxation under section 501 of the Internal
 5      Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501);
 6             (2)   unless approved or ordered by the commission,
 7      advertising, marketing, communication or other related
 8      expense identified by the commission that seeks to influence
 9      public opinion or create goodwill toward a public utility;
10             (3)   travel, lodging or food and beverage expense for the
11      board of directors and officers of a public utility or the
12      board of directors and officers of a parent company of a
13      public utility;
14             (4)   entertainment or gifts;
15             (5)   any owned, leased or chartered aircraft for the
16      board of directors and officers of a public utility or the
17      parent company of a public utility; or
18             (6)   investor relations.
19      Section 2.     Title 66 is amended by adding a section to read:
20   § 2816.    Membership in regional transmission organization.
21      (a)    General rule.--An electric distribution company shall be
22   a member of a regional transmission organization.
23      (b)    Filing of report.--On or before February 1 each year, an
24   electric distribution company shall submit to the commission a
25   report on any recorded vote cast by the electric distribution
26   company or, subject to subsection (c), an affiliate of the
27   electric distribution company at a meeting of a regional
28   transmission organization during the immediately preceding
29   calendar year.
30      (c)    Contents of report.--The report under subsection (b)

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 1   shall include:
 2            (1)   all recorded votes cast by the electric distribution
 3      company, regardless of whether the vote is otherwise
 4      disclosed;
 5            (2)   all votes cast by an affiliate of the electric
 6      distribution company, if the electric distribution company
 7      itself did not vote on the matter; and
 8            (3)   a brief description explaining how each vote cast by
 9      the electric distribution company or its affiliate is in the
10      interest of the public.
11      (d)   Definitions.--As used in this section, the following
12   words and phrases shall have the meanings given to them in this
13   subsection unless the context clearly indicates otherwise:
14      "Affiliate."    A corporation or person with an affiliated
15   interest as defined in section 2101 (relating to definition of
16   affiliated interest).
17      "Meeting."    A committee, user group, task force or other part
18   of a regional transmission organization in which votes are
19   taken.
20      "Recorded vote."     A vote that is tabulated, either
21   individually or as part of a sector, for any purpose at a
22   meeting, regardless of:
23            (1)   whether the vote represents a final position of any
24      person casting the vote; or
25            (2)   the decision-making authority of those voting.
26      "Regional transmission organization."     An entity that
27   qualifies as a regional transmission organization under 18 CFR
28   35.34 (relating to regional transmission organizations).
29      Section 3.    This act shall take effect in 60 days.



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