This
rule was filed as NMPSC 350.
TITLE 17 PUBLIC
UTILITIES AND UTILITY SERVICES
CHAPTER 3 UTILITIES
FINANCIAL ACCOUNTING AND REPORTING - GENERAL PROVISIONS
PART 350 TREATMENT
OF PUBLIC UTILITY ADVERTISING EXPENSES, CONTRIBUTIONS,
DONATIONS,
DUES, SUBSCRIPTIONS AND MEMBERSHIP FEES, AND LOBBYING
EXPENSES
IN RATE CASES
17.3.350.1 ISSUING
AGENCY: New Mexico Public Service Commission [New
Mexico Public Regulation Commission]
[Recompiled
12/30/01]
17.3.350.2 SCOPE:
NMPSC Rule 350 [17.3.350 NMAC] shall apply to all rate case proceedings
including any pertinent applications for periodic rate adjustment filed in the
Commission's offices.
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12/30/01]
17.3.350.3 STATUTORY
AUTHORITY:
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12/30/01]
17.3.350.4 DURATION:
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17.3.350.5 EFFECTIVE
DATE:
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12/30/01]
17.3.350.6 OBJECTIVE:
The purpose of NMPSC Rule 350 [17.3.350 NMAC] is to establish rules and
regulations governing the treatment of certain operating expense items in
setting rates as well as to address the federal standard on utility and
advertising as set out in Section 113(b)(5) of the Public Utility Regulatory
Policy Act of 1978, P.L. 95-617, 16 USC Section 2623.
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12/30/01]
17.3.350.7 DEFINITIONS:
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12/30/01]
17.3.350.8 [TABLE
OF CONTENTS]
A. Preamble
[17.3.350.6 NMAC]
B. Applicability
[17.3.350.2 NMAC]
C. Advertising Expenses
[17.3.350.9 NMAC]
D. Contributions, Donations, Dues, Subscriptions, and
Membership Fees [17.3.350.10 NMAC]
E. Lobbying Expenses
[17.3.350.11 NMAC]
F. Variances
[17.3.350.12 NMAC]
[Recompiled
12/30/01]
17.3.350.9 ADVERTISING
EXPENSES:
A. Definition:
"Advertising Expenses" shall mean all expenses made for the
development, publication, and/or dissemination of information to a utility's
ratepayers, the public at large, or to utility stockholders including, but not
limited to, publications in newspapers, magazines, information for use by the
electronic media, bill enclosures, or other mailings to ratepayers,
stockholders, or the public at large; salaries for in-house personnel engaged
in advertising activities; live presentations other than before regulatory or
legislative bodies.
B. Allowable Expenditures:
Except as provided in (c) [C] below, advertising expenses which may be
properly included in the cost of service shall be that advertising which is
reasonable in amount and which:
(1) Advises the ratepayers of matters of
public safety, health or emergency situations;
(2) Advocates to rate payers through factual
data and advice their conservation of energy resources and reduction of peak
demand;
(3) Explains utility billing practices,
services, and rates to ratepayers;
(4) Must be filed with governmental agencies
or financial institutions (including Annual Reports and stock prospectuses)
other than advertisements filed pursuant to (6) below;
(5) Advises customers of employment
opportunities with the utility company;
(6) Provides
information required to be made available to customers or stockholders under
state or federal law and regulation; or
(7) Otherwise results in a measurable
reduction of operating costs and more efficient utility service to ratepayers
except as excluded by (c) [C] below.
C. Unallowable Expenditures: Advertising expenses which shall be properly excluded from cost
of service are those which in whole or in any part:
(1) Promote increases in the usage of energy
or utility services;
(2) Except as required by state or federal
law or regulations promote the sale of any goods or services from any specific
company including, but not limited to, the utility company or any subsidiary or
affiliated company;
(3) Seek to establish a favorable public
image of the company other than by identifying it as the source of an allowable
advertising expenditure as defined in subsection (b) [B];
(4) Advocate a position rather than providing
factual information in any advertisement allowable under subsection (b) [B];
(5) Justify a request for higher rates, or
the need for plant expansion, or for any particular addition to plant or
service costs.
D. Burden of Proof:
A utility seeking to include any advertising expenditures in determining
its cost of service must affirmatively show through the presentation of clear
and convincing evidence that each expenditure is allowable under the criteria
established in (b) [B] below and that it is not excluded by any provision of
(c) [C] above.
E. Advertisement Records:
Every utility seeking to include advertising expenditures in its cost of
service shall maintain a record of each advertisement including the complete
text and an exact copy and the costs associated with its production and
dissemination to the public. Such
records shall be open to inspection by the Commission staff and shall be submitted
as part of the company's rate case filing.
[Recompiled
12/30/01]
17.3.350.10 CONTRIBUTIONS,
DONATIONS, DUES, SUBSCRIPTIONS, AND MEMBERSHIP FEES:
A. Contributions or donations to any political candidate,
any political party, any religious cause, or any social, recreational, or
fraternal organization shall not be allowed as a cost of service.
B. Dues in professional or trade associations and
subscriptions to publications shall be allowed as a cost of service by a
utility provided these dues contribute to the professional education and standing
of the company's employees for whom the dues shall be paid.
C. Contributions, donations, dues, subscriptions, and
membership fees other than those included in (a) [A] and (b) [B] above will not
be included in the determination of cost of service unless a utility
affirmatively demonstrates that such expenditures are reasonable. Maintenance of full and adequate accounting
for each expense shall be a prerequisite to allowance of any expenditure in
rates under this part. Maintenance of
corporate good will or good corporate citizenship is an insufficient reason for
inclusion of these expenditures in determining a utility's cost of service.
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12/30/01]
17.3.350.11 LOBBYING
EXPENSES: Expenses which directly or indirectly
support utility or utility-related lobbying efforts on a local, state,
regional, or national level shall not be allowable in determining a utility's
cost of service. The utility company
shall maintain complete records of all expenditures, including portions of
payments made for dues or other expenses, in support of utility or other
lobbying efforts.
[Recompiled
12/30/01]
17.3.350.12 VARIANCES:
Any rural electric cooperative, municipal utility or association may
file a variance under NMPSC Rule 350 [17.3.350 NMAC]. Upon a showing of good cause, the Commission may grant said
variance.
[Recompiled 12/30/01]
17.3.350.13 [HISTORY: NMPSC Case No.2086, order dated June 30,
1988, unless otherwise noted. Formerly
NMPSC General Order No 31, superseded for purposes of rule reorganization and
codification.]
[Recompiled
12/30/01]
HISTORY
OF 17.3.350 NMAC:
Pre-NMAC
History: The material in this part was
derived from that previously filed with the Commission of Public Records-State
Records Center and Archives.
PSC-GO
31, (General Order No. 31), New Mexico Public Service Commission General Order
No. 31, 9/6/79.
NMPSC
Rule 350, Treatment Of Public Utility Advertising Expenses, Contributions,
Donations, Dues, Subscriptions And Membership Fees, And Lobbying Expenses In
Rates Case, 6/30/88.
History
of Repealed Material: [RESERVED]