Sec. 32.7370  Special charges.

    This account shall include the following costs that are typically 
given special regulatory scrutiny for ratemaking purposes. Unless 
specific justification to the contrary is given, such costs are presumed 
to be excluded from the costs of service in setting rates.
    (a) Lobbying includes expenditures for the purpose of influencing 
public opinion with respect to the election or appointment of public 
officials, referenda, legislation, or ordinances (either with respect to 
the possible adoption of new referenda, legislation or ordinances, or 
repeal or modification of existing referenda, legislation or ordinances) 
or approval, modification, or revocation of franchises, or for the 
purpose of influencing the decisions of public officials. This also 
includes advertising, gifts, honoraria, and political contributions. 
This does

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not include such expenditures which are directly related to 
communications with and appearances before regulatory or other 
governmental bodies in connection with the reporting utility's existing 
or proposed operations;
    (b) Contributions for charitable, social or community welfare 
purposes;
    (c) Membership fees and dues in social, service and recreational or 
athletic clubs and organizations;
    (d) Penalties and fines paid on account of violations of statutes. 
This account shall also include penalties and fines paid on account of 
violations of U.S. antitrust statutes, including judgements and payments 
in settlement of civil and criminal suits alleging such violations; and
    (e) Abandoned construction projects.
[ 51 FR 43499 , Dec. 2, 1986, as amended at  54 FR 22758 , May 26, 1989;  62 FR 20126 , Apr. 25, 1997]