Article 3. Surcharge of California Public Utilities Code >> Division 3. >> Chapter 2.5. >> Article 3.
(a) Notwithstanding any other provision of law, a
transportation customer who receives transportation service on a
natural gas or electric transmission or distribution system, or both,
subject to a franchise agreement executed pursuant to this division
from an energy transporter shall be subject to a surcharge as defined
in Section 6353. Notwithstanding any other provision of this
chapter, no county shall impose a surcharge pursuant to this chapter
in an incorporated area.
(b) Notwithstanding subdivision (a), the surcharge assessed for
gas used to generate electricity by a nonutility facility shall be
the same as the surcharge assessed for gas used to generate
electricity by the electric utility for that quantity of gas
described in Section 454.4. The surcharge amount for electricity
shall not apply to the sale of electricity from a cogeneration or
nonutility facility to an entity for resale to a retail customer.
(c) Nothing in this chapter permits a municipality to recover
surcharges imposed pursuant to this chapter on the commodity cost of
gas or electricity transported for transportation customers in
addition to franchise fees calculated on the imputed value of the
same quantities of gas or electricity. If a municipality has a
franchise agreement with an energy transporter that requires the
energy transporter to pay a franchise fee based upon an imputed value
for the commodity cost of gas or electricity transported but not
sold by the energy transporter, the energy transporter may apply the
surcharge imposed by this chapter toward the amount of the franchise
fee due under the franchise agreement.
(d) Nothing in this chapter shall in any way affect the rights of
the parties to existing franchise agreements executed pursuant to
this division that are in force on the effective date of this
(e) Notwithstanding subdivision (a), the surcharge shall not apply
to corporations transporting natural gas pursuant to a "gas
transportation only" agreement in effect prior to January 1, 1986.
(f) Notwithstanding subdivision (a), an energy transporter of gas
that is required to obtain a franchise agreement with a municipality,
and that is subject to the jurisdiction of the Federal Energy
Regulatory Commission, shall not be required to collect the surcharge
imposed by this chapter, but shall be required to negotiate with the
municipality under the provisions of this division, franchise fees
that recover amounts equivalent to those amounts that would otherwise
have been recovered pursuant to this chapter.
For purpose of calculating the surcharge required in Section
6352, the energy transporter shall do all of the following:
(a) For each transportation customer, determine the volume of
transported gas or electricity, in therms or kilowatt hours
respectively, subject to the surcharge.
(b) Determine the weighted average cost of the energy transporter'
s gas or electricity. For gas, the energy transporter shall use its
tariffed core subscription weighted average cost of gas (WACOG)
exclusive of any California sourced franchise fee factor. For
electricity, the energy transporter shall use that portion of the
otherwise applicable utility rate or charge which, pursuant to
commissioner order, is removed from the bill of a retail electric
customer who has elected direct access to reflect the fact that the
customer is purchasing energy from a nonutility provider exclusive of
any California sourced franchise fee factor. For an energy
transporter that does not provide gas or electricity at a commission
tariffed rate, the energy transporter shall use the equivalent
tariffed rate of the commission regulated energy transporter
operating in the same service area.
(c) Determine a product for each transportation customer by
multiplying the volume determined pursuant to subdivision (a) by the
weighted average cost determined pursuant to subdivision (b).
(d) Determine the surcharge applicable to each transportation
customer by multiplying the product determined pursuant to
subdivision (c) by the sum of the franchise fee factor plus any
franchise fee surcharge authorized for the energy transporter as
approved by the commission in the energy transporter's most recent
proceeding in which those factors and surcharges were set. An energy
transporter not regulated by the commission shall multiply the
product determined in subdivision (c) by the franchise fee rate
contained in its individual franchise agreement in effect in each
(e) The surcharge assessed pursuant to this chapter only applies
to the end use point.