(a) Actual expenditures for advertising shall be allowed as a cost of service for ratemaking purposes provided that the total sum of such expenditures shall not exceed one-half of 1.0% of the gross receipts of the utility for utility services rendered in the public except as provided in this section.
(b) No expenditure for the following special items shall be allowed as a cost of service for ratemaking purposes:
  (1) funds spent for 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, including funds spent to mail any such information;
  (2) funds expended in support of or membership in social, recreational, fraternal, or religious clubs or organizations; or
  (3) funds expended for contributions and donations to charitable, religious, or other nonprofit organizations or institutions.
(c) The limitations set forth in subsections (a) and (b) of this section shall not limit the following:
  (1) advertising which informs natural gas consumers how they can conserve natural gas or can reduce peak demand for natural gas;
  (2) advertising required by law or regulation, including advertising required under Part I of Title II of the National Energy Conservation Policy Act;
  (3) advertising regarding service interruptions, safety measures, or emergency conditions;
  (4) advertising concerning employment opportunities with such utility; or
  (5) any explanation of existing or proposed rate schedules, or notifications of hearings thereon.

Source Note: The provisions of this §7.5414 adopted to be effective July 29, 2002, 27 TexReg 6687