| (a) Actual expenditures for advertising shall be allowed as
a cost of service for ratemaking purposes provided that the total sum of such
expenditures shall not exceed one-half of 1.0% of the gross receipts of the
utility for utility services rendered in the public except as provided in
this section.
(b) No expenditure for the following special items shall be
allowed as a cost of service for ratemaking purposes:
(1) funds spent for advertising for the purpose of influencing
public opinion with respect to legislative, administrative, or electoral matters,
or with respect to any controversial issue of public importance, including
funds spent to mail any such information;
(2) funds expended in support of or membership in social, recreational,
fraternal, or religious clubs or organizations; or
(3) funds expended for contributions and donations to charitable,
religious, or other nonprofit organizations or institutions.
(c) The limitations set forth in subsections (a) and (b) of
this section shall not limit the following:
(1) advertising which informs natural gas consumers how they
can conserve natural gas or can reduce peak demand for natural gas;
(2) advertising required by law or regulation, including advertising
required under Part I of Title II of the National Energy Conservation Policy
Act;
(3) advertising regarding service interruptions, safety measures,
or emergency conditions;
(4) advertising concerning employment opportunities with such
utility; or
(5) any explanation of existing or proposed rate schedules,
or notifications of hearings thereon.
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