North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 11 - UTILITIES COMMISSION › Chapter 12 › Section 11 R12-13 - ADVERTISING, LOBBYING, CHARITABLE CONTRIBUTIONS, AND POLITICAL CONTRIBUTIONS BY ELECTRIC, NATURAL GAS, WATER AND SEWER UTILITIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				Except as may otherwise be permitted by this Rule, in ascertaining reasonable
				operating expenses pursuant to
				G.S.
				62-133, no electric, or natural gas, water,
				or sewer utility shall be permitted to recover from its ratepayers any direct
				or indirect expenditure made by such utility for nonutility advertising, or any
				of the following as defined in Rule R12-12: lobbying, a charitable
				contribution, political advertising, promotional advertising, or a political
				contribution. In every application for a change in rates, the utility shall
				certify in its prefiled testimony that its application does not include costs
				for lobbying, political or promotional advertising, a political contribution,
				or a charitable contribution. Further, if the utility seeks to recover costs
				based on an exception under Rule R12-12(g), or under subsections (d) or (e) of
				this Rule, the utility shall include prefiled testimony stating the amount
				claimed and the basis for the exception. The utility shall maintain detailed
				records sufficient, and no less than what would be maintained in the absence of
				such certification, to allow the Commission and parties to determine whether
				the utility has complied with this subsection, including the executive branch
				agencies contacted, the individuals contacted at the executive branch agencies,
				the subjects of discussion, and the amount of person-hours spent in preparation
				for and in the discussions.
(b)
				Political and promotional advertisements as defined by Rule R12-12 and other
				nonutility advertisements shall be accompanied by the following statement or a
				statement substantially to the following effect:
THIS MESSAGE IS NOT PAID FOR BY THE CUSTOMERS OF (the
				  electric or natural gas utility sponsoring the advertisement).
This statement shall be so located and of such size so as to
				  be readily visible or audible to those individuals who may be exposed to the
				  advertisement or communication.
(c) Expenditures made by an electric, natural
				gas, water, or sewer utility for the types of advertising described in Rule
				R12-12(g) will generally be deemed to be reasonable operating expenses,
				provided however, that the Commission shall not be precluded from determining,
				on a case-by-case basis, the extent to which such expenditures may have
				exceeded a reasonable level or amount.
(d) Expenditures made by an electric, natural
				gas, water, or sewer utility for advertising of a type or nature other than
				that described in subsections (b), (c), or (g) of Rule R12-12 or for other
				nonutility advertising shall be considered by the Commission to represent
				reasonable operating expenses, in whole or in part in the Commission's
				determination, to the extent that it can be established, on a case-by-case
				basis, that -
(1) the advertising is primarily
				of benefit to the using and consuming public, or
(2) the advertising enhances the ability of
				the public utility to provide efficient and reliable service.