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The Public Regulatory Policies Act of 1978 (the “Act”), requires the State Corporation Commission to give public notice and conduct a public hearing on whether the federal Advertising Standard established by Sec. 113 (b) (5) and 303 (b)‘ (2) of the Act should be adopted so as to apply to gas and electric utilities in Virginia. The standard under consideration is as follows:
ADVERTISING - No electric or gas utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditure by such utility for promotional or political advertising as defined below. For purposes of this standard -
(A) The term “advertising” means the commercial use, by an electric or gas utility, 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 such utility's consumers.
(B) The term “political advertising” means any advertising for the purpose of influencing public opinion with respect to legislative, administrative or electoral matters, or with respect to any controversial issue of public importance.
(C) The term “promotional advertising” means any advertising for the purpose of encouraging any person to select or use the service or additional service of the utility or the selection or installation of any appliance or equipment designed to use such utility’s service.
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