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Pacific Gas and Electric Company Pays More Than $140 Million in Franchise Fee Payments to Cities and Counties

Release Date: April 22, 2008
Contact: PG&E External Communications (415) 973-5930

SAN FRANCISCO -- Pacific Gas and Electric Company today announced it has completed its 2007 franchise fee and franchise fee surcharge payments totaling more than $140 million to the 48 counties and 244 California cities in which it operates. The 2007 franchise fee and franchise fee surcharge payments total about $53 million for gas and about $87 million for electric service.

“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 during tight budgetary times that support the many important services residents expect from their communities including police and fire protection, education, public health and environmental services,” said Nancy E. McFadden, PG&E’s senior vice president of public affairs. “The combination of franchise fee and property tax payments made by PG&E in recent weeks together provide nearly $250 million of support to the communities in which we do business.”

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 cities.

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation, 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/.

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