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Friday, 06 April 2007 03:59

PG&E Franchise Fees Bolster County Coffers

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slide14Pacific 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.”
slide16 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.
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