Kentucky Administrative Regulations
Title 807 - ENERGY AND ENVIRONMENT CABINET PUBLIC SERVICE COMMISSION
Chapter 5 - Utilities
Section 807 KAR 5:016 - Advertising
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS Chapter 278
NECESSITY, FUNCTION, AND CONFORMITY: KRS 278.190(3) provides that at any hearing involving a rate or charge of a utility for which an increase is sought, the burden of proof shall be on the utility to show that the increased charge or rate is just and reasonable. This administrative regulation specifies what advertising expenses of a utility will be allowable as a cost to the utility for rate-making purposes.
Section 1. General. The purpose of this administrative regulation is to insure that no direct or indirect expenditures may be includable in a gas or electric utility's cost of service for rate-making purposes which are for promotional advertising, political advertising or institutional advertising. It is also the purpose of the administrative regulation to insure that no direct or indirect expenditures may be includable in a telephone, water, or sewage utility's cost of service for rate-making purposes which are for political advertising or institutional advertising. "Advertising" means the commercial use of any media, including newspaper, printed matter, radio and television, in order to transmit a message to a substantial number of members of the public or to utility consumers.
Section 2. Advertising Allowed.
Section 3. Material Benefit.
Section 4. Advertising Disallowed.
Section 5. Burden of Proof. The utility shall have the burden of proving that any advertising cost or expenditures proposed for inclusion in its operating expenses for rate-making purposes within a given test year fall within the categories enumerated in Section 3 of this administrative regulation or that such advertising is otherwise of material benefit to its ratepayers.
STATUTORY AUTHORITY: KRS 278.040, 278.190(3)