PG&E Makes More Than $151 Million In Franchise Fee Payments to California Cities and Counties
Release Date: April 15, 2009
Contact: PG&E External Communications (415) 973-5930
Pacific Gas and Electric Company (PG&E) today announced it has paid more than $151 million in 2008 franchise fees and franchise fee surcharges to the 48 counties and 244 California cities in which it operates.
The 2008 payments total about $62 million for gas and about $89 million for electric service. This represents an increase of more than $11 million above the previous year.
“PG&E’s payment of franchise fees and property taxes is a stable source of revenue local governments can count on during tight budgetary times,” said Nancy E. McFadden, PG&E’s senior vice president of public affairs. “In recent weeks PG&E paid more than $267 million in franchise fees and property taxes. These payments support important services including police and fire protection, education, public health and environmental services.”
A franchise fee is a percentage of gross receipts that PG&E 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 collects the surcharges and passes them to cities and counties.
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with 20,000 employees, the company delivers some of the nation’s cleanest energy to 15 million people in northern and central California. For more information, visit www.pge.com/about.