N.M. Admin. Code § 17.3.350.9

Current through Register Vol. 35, No. 17, September 10, 2024

Section 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.

N.M. Admin. Code § 17.3.350.9

Recompiled 12/30/01