HB 2313

                                                 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
10activity 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
24affiliate of the public utility that are directly billed
25or allocated to the public utility.
26(ii)    A list of the title, job description and salary
27of any employee of the public utility who performed work
28associated with the lobbying or political activity,
29including the hours attributed to the work.
30(iii)    A list of the title, job description and
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1salary of any employee of the parent company or affiliate
2of the public utility who performed work associated with
3the lobbying or political activity, including the hours
4attributed to the work that were directly billed or
5allocated to the public utility.
6(iv)   A list of payments that the public utility made
7to all third-party vendors for expenses associated with
8the lobbying or political activity, including unredacted
9billing amounts, billing dates, payees and an explanation
10of each expenditure in detail sufficient to describe the
11purpose of the cost.
12(v)    Any other information the commission considers
13relevant.
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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