Electrical and gas corporations: rates: political influence activities and promotional advertising.

Senator McNerney's legislation prohibits electrical and gas corporations from charging ratepayers for political influence activities and promotional advertising expenses. The bill requires utilities to maintain separate accounting for costs related to lobbying, political contributions, image-building advertisements, and efforts to oppose municipal utility formation.

Under the new requirements, utilities must clearly disclose whether shareholders or ratepayers fund their advertising and submit detailed annual reports documenting political influence activities and promotional expenses. These reports, which will be publicly available, must include information about employee compensation, vendor contracts, and participation in regulatory proceedings when costs are allocated to ratepayer accounts.

The California Public Utilities Commission and Public Advocate's Office will monitor compliance through expanded investigative authority. Utilities face civil penalties for improperly recording prohibited expenses to ratepayer accounts, with each day of violation treated as a separate offense after a 30-day correction period. One-fourth of penalty revenues will support enhanced enforcement upon legislative appropriation.