PG&E Co. makes over $145 million in franchise fee payments to local governments

SAN FRANCISCO, April 2, 2002 — Pacific Gas and Electric Co. announced it is making its 2001 franchise fee and franchise fee surcharge payments — on time and in full — totaling $145 million to the 290 cities and counties in which it operates.

The payments total $72.3 million for gas and $73.1 million for electric service franchises and surcharges.

The 2001 franchise fee and franchise fee surcharge payments represent a 44 percent increase over the 2000 payments. These increases are primarily due to the higher energy costs that were part of the 2001 energy crisis.

“Pacific Gas and Electric Company continues to meet its commitment to cities and counties whose revenues depend in part on franchise fees paid by the utility,” said Gordon R. Smith, president and chief executive officer of Pacific Gas and Electric Company. “These revenues are used to support the many important services residents expect from their local government — 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 cities and counties.

These payments are due on or before March 31 or April 15, depending upon contracts and circumstances. The cities and counties that receive March payments have all been paid in full and those cities and counties with an April 15 payment date will begin receiving payments the week of April 8, 2002.

For more information about Pacific Gas and Electric Company, please visit its web site at

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at

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