R746-406-1. General Provisions

Except as provided in Subsection C, no electric or gas utility may recover from a person, other than shareholders or other owners of the utility, a direct or indirect expenditure by the utility for political, promotional or institutional advertising.

A. For the purposes of this rule:

1. The term "advertising" means the commercial use, by an electric or gas utility, of media, including newspaper, printed matter, radio, and television, in order to transmit a message to a substantial number of members of the public or to the utility's consumers.

2. The term "political advertising" means advertising for the purpose of influencing public opinion with respect to legislative, administrative, or electoral matters, or with respect to an issue of public dispute.

3. The term "promotional advertising" means advertising for the purpose of encouraging a person to select or use the service or additional service of an electric or gas utility or the selection or installation of an appliance or equipment designed to use that utility's service.

4. The term "institutional advertising" means advertising which is designed to create, enhance, or sustain an electric or gas utility's public image or good will with the general public or the utility's customer.

B. For the purposes of this rule, the terms "political advertising," "promotional advertising," and institutional advertising" do not include:

1. advertising which informs consumers how they can conserve energy, use energy wisely, or reduce peak demand for energy;

2. advertising required by law or regulation, including advertising required under Part 1 of Title II of the National Energy Conservation Policy Act;

3. advertising regarding service interruption, safety measures, or emergency conditions;

4. advertising concerning employment opportunities with the utility; or

5. an explanation of existing or proposed rate schedules, or notifications of hearing thereon, or

6. information about the availability of energy assistance programs.

C. Notwithstanding the foregoing provisions, expenditures relating to promotional and institutional advertising may be recovered in rates if the Commission has found, after due consideration in either a rate case or separate proceeding prior to implementation, that the advertising is in the public interest.