Friday, 06 April 2007 03:59
PG&E Franchise Fees Bolster County Coffers
Pacific Gas and Electric
Company has announced it
has made its 2006 franchise fee and franchise fee surcharge payments totaling
more than $39 million to 48 counties in which it operates. The 2006
franchise fee and franchise fee surcharge payments total $16 million for gas
and about $23 million for electric service. The 2006 franchise fee and surcharge payments
represent an increase of about $2.1 million over the 2005 payments primarily
due to increased natural gas prices following Hurricanes Katrina and Rita in
2006. “PG&E has been a part of northern and central
California landscape for more than 100 years, and our commitment to support the
communities in which we do business has never been stronger,” said Nancy
E. McFadden, PG&E’s senior vice president of public affairs. “PG&E’s payment of property
taxes, franchise fees and other taxes and fees is a constant source of revenue
local governments can count on to support the many important services residents
expect such as police and fire protection, education, public health, and
environmental services.”
A franchise fee is a
percentage of gross receipts that Pacific Gas and Electric Company pays cities
and counties for the right to use public streets to run gas and electric
service. The franchise fee surcharge is a percentage of the transportation and
energy costs to customers choosing to buy their energy from third parties.
PG&E serves as the collection agent for the surcharges and passes the amounts
to the counties. These payments are due on or before March 31, 2007. According
to County Auditor Joe Lowe those dollars have arrived in Amador County to the
tune of 320,791 dollars. According to Lowe those monies go into the Amador
County general phone.