§ 23-4-207 - Advertising costs.
23-4-207. Advertising costs.
(a) As used in this section, unless the context otherwise requires:
(1) "Advertising" means the commercial use by a utility of any medium including newspaper, bill enclosures, 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) "Informational advertising" means any advertising for the purpose of instructing customers in the use of service or providing information about the service;
(3) "Political advertising" means any advertising for the purpose of influencing public opinion with respect to legislative, administrative, or electoral matters; and
(4) "Promotional advertising" means any advertising for the purpose of encouraging any person to select or use any utility service. However, advertising which promotes or encourages the use of more energy-efficient appliances or the installation or usage of energy conservation measures as permitted in subsection (c) of this section shall not be considered to be promotional advertising for purposes of this section.
(b) No public utility, as that term is defined by 23-1-101, shall charge, demand, collect, or receive from its customers or any person other than the shareholders or other owners of the utility any direct or indirect expenditure for promotional or political advertising.
(c) Notwithstanding the provisions of subsection (b) of this section, but subject to the review of the Arkansas Public Service Commission, public utilities may properly recover from customers reasonable costs for advertising which comes within one (1) or more of the following categories:
(1) Advertising that informs electric and gas consumers how they can conserve energy or can reduce peak demand for electric energy;
(2) Advertising that is designed to promote the more efficient use of energy or energy resources within this state;
(3) Advertising concerning employment opportunities with the utility;
(4) Advertising which promotes or encourages the use of energy in such a way as to improve or maintain a utility's load factor or which promotes or encourages the acquisition, installation, or use of energy-efficient appliances, equipment, or energy conservation measures, or load management techniques including, but not limited to: caulking, weatherstripping, furnace efficiency modifications, installation or replacement of energy-efficient furnaces or boilers or furnace replacement burners, flue opening modifications, electrical or mechanical ignition systems, installation or replacement of energy-efficient air conditioning systems, heat pumps, ceiling insulation, wall insulation, floor insulation, duct insulation, pipe insulation, water heater insulation, storm windows, thermal windows, storm or thermal doors, heat-reflective and heat-absorbing windows or door material, clock thermostats, and devices associated with load management techniques;
(5) Any explanation of existing or proposed rate schedules, or notifications thereof;
(6) Information concerning the impact of facility siting, operations, or future plans on surrounding areas and populations;
(7) Information concerning operations at company facilities that may potentially affect the public safety, convenience, and welfare;
(8) Advertising which promotes economic development in the State of Arkansas where the utility can demonstrate, and the commission shall find, that the advertising expenditures were directly related to, and were reasonably incurred in the promotion of, the economic development of this state. Collection from customers of the utility of advertising expenditures shall be limited to those expenditures actually incurred within the test year utilized for ratemaking purposes as defined in 23-4-406 and shall further be limited to five-one-hundredths of one percent (.05%) of the utility's revenues during that test year; and
(9) Any other advertising which the commission determines should be recovered from the ratepayers.
(d) Notwithstanding any other provisions of this section, and subject to approval by the commission, telephone utilities may recover from persons other than shareholders any direct or indirect expenditure for promotional and informational advertising regarding competitive service offerings.