65- 407 C.M.R. ch. 83, § 5

Current through 2024-25, June 19, 2024
Section 407-83-5 - Ratemaking Treatment
A. Political Activities. It is the policy of the Commission and it adopts the standard that no pubic [public] utility shall recover from any person other than its shareholders or other owners for any expenditures, contributions, expenses, or costs of such utility incurred with respect to political activities. This subsection applies to all direct or indirect expenditures, contributions, expenses, and costs incurred by a public utility with respect to political activities, or through another corporation, organization, association, or individual which engages in political activities on behalf of the utility.

Each public utility which files with the Commission for a change in rates shall account separately for all expenditures, contributions, expenses, and costs associated with political activities, in accordance with the provisions of section 3 of this rule, and shall not include such expenditures, contributions, expenses, and costs as an operating expense for ratemaking purposes. Any request for allowance of such expenditures, contributions, expenses, or costs as an operating expense for ratemaking purposes shall be made in the form of an adjustment to test period operating expenses, which adjustment must be supported by adequate evidence and documentation. The Commission may allow or disallow the adjustment, or any part thereof, on the basis of the policy expressed in this rule and the justness and reasonableness of the expenditure, contribution, expense, or cost in the particular case.

B. Political Contributions under 35 M.R.S.A. §51-A. Notwithstanding any other provision of this rule, pursuant to 35 M.R.S.A. §51-A(1978), contributions or gifts to political candidates, political parties, political or legislative committees, or to any committees or organizations working to influence referendum petitions or elections, whether paid directly or indirectly, through reimbursement or otherwise, incurred by a public utility, shall not be included or incorporated in operating expenses.
C. Institutional Advertising, Promotional Advertising, and Promotional Allowances by Electric and Gas Utilities. It is the policy of the Commission and it adopts the standard that no electric or gas utility shall recover from any person other than its shareholders or other owners for any expenditures, contributions, expenses, or costs of such utility incurred with respect to institutional advertising, promotional advertising, or promotional allowances. This subsection applies to all direct or indirect expenditures, contributions, expenses, or costs incurred by a public utility with respect to institutional advertising, promotional advertising, or promotional allowances, or through another corporation, organization, association, or individual which engages in institutional advertising, promotional advertising, or promotional allowances, or through another corporation, organization, association, or individual which engages in institutional advertising, promotional advertising, or promotional allowances on behalf of the utility.

Each electric or gas utility which files with the Commission for a change in rates shall account separately for all expenditures, contributions, expenses, and costs associated with institutional advertising, promotional advertising, and promotional allowances, in accordance with the provisions of section 3 of this rule, and shall not include such expenditures, contributions, expenses, and costs as an operating expense for ratemaking purposes. Any request for allowance of such expenditures, contributions, expenses, or costs as an operating expense for ratemaking purposes shall be made in the form of an adjustment to test period operating expenses, which adjustment must be supported by adequate evidence and documentation. The Commission may allow or disallow the adjustment, or any part thereof, on the basis of the policy expressed in this rule and the justness and reasonableness of the expenditure, contribution, expense, or cost in the particular case.

D. Other Expenses. The inclusion or exclusion of any provision in this rule shall not restrict or limit, nor be construed to restrict or limit, the Commission's power in any rate case involving any public utility to disallow, in whole or in part, any expense which the Commission finds to be unjust, unreasonable, excessive, or unwarranted.

65- 407 C.M.R. ch. 83, § 5