Section § 40016

Explanation

This law imposes a small additional charge on the use of electrical energy bought from utilities in California, starting from January 1, 2003. The standard rate is set at $0.0003 per kilowatt-hour but can be adjusted annually by the Energy Commission.

The Commission sets this rate each November for the next year. The rate cannot exceed $0.0003 per kilowatt-hour. If the Commission doesn't set a new rate, the current rate remains in place.

(a)CA Revenue & Taxation Code § 40016(a) A surcharge is imposed on the consumption in this state of electrical energy purchased from an electric utility on and after January 1, 2003, at the rate of three-tenths mill ($0.0003) per kilowatt-hour, or at the rate determined pursuant to subdivision (b).
(b)CA Revenue & Taxation Code § 40016(b) The Energy Commission shall fix the rate at a public meeting in each November for each calendar year starting the following January. Under no circumstances may the rate fixed exceed three-tenths mill ($0.0003) per kilowatt-hour. If the commission fails to fix the rate in any November, the surcharge shall continue at the rate in effect during that November.

Section § 40018

Explanation

If you're using electricity in California and buy it from an electric utility or a U.S. government agency, you have to pay a surcharge. You're off the hook for this surcharge only when it's paid to the state. However, if you pay it through a registered electric utility, you're not responsible for anything more.

Every person consuming electrical energy in this state purchased from an electric utility, or the United States or an agency thereof, is liable for the surcharge. His liability is not extinguished until the surcharge has been paid to this state, except that payment to an electric utility registered under this part is sufficient to relieve the consumer from further liability for the surcharge.

Section § 40019

Explanation

If you are an electric utility selling electricity to customers in California, you have to collect a surcharge from each customer when you collect their bill, except if the customer is another electric utility. You start collecting this surcharge beginning with the first regular billing cycle after this law takes effect.

Every electric utility making sales of electrical energy to consumers in this state shall collect the surcharge from each consumer, other than a consumer that is an electric utility, at the time it collects its billings from the consumer for the electrical energy sold; provided, the duty to collect the surcharge from a consumer shall commence with the beginning of the first regular billing period applicable to that person which starts on or after the operative date of this part.

Section § 40019.1

Explanation

This law allows electric utilities in California to impose a surcharge on each other if they agree to the terms and conditions with the State Board. This is an exception to the usual rule in Section 40019.

Notwithstanding the provisions of Section 40019, an electric utility may collect the surcharge from another electric utility under such terms and conditions as are agreed upon by the electric utilities involved and the board.

Section § 40020

Explanation

This law requires electric utilities to include an energy resources surcharge in the charges for electrical energy sold to consumers. The surcharge amount can be shown separately on the bill, but if it's not, a notice must state that the charges include this surcharge, specifying the rate per kilowatt-hour. Until January 1, 1976, utilities didn't have to include this on the bill itself but had to inform customers about the surcharge in other ways.

If the rate changes, the utility must inform customers of the new rate before or when the bill covering that new rate is sent, especially if the surcharge isn't listed separately or noted on the bill.

The surcharge required to be collected by the elecric utility from the consumer shall be added to the charges to the consumer for the electrical energy sold. The amount of the surcharge may be stated separately. If the electric utility does not separately state the amount of the surcharge, the electric utility shall print on the billing a notice to the effect that the charges include energy resources surcharge computed at (applicable rate) mill per kilowatt hour. Until January 1, 1976, such notice need not appear on the billing itself provided that the electric utility notifies each of its customers, no later than at the time it renders a bill for the first regular billing period applicable to that person which starts on or after the operative date of this part, that electical energy charges shall include energy resources surcharge computed at (applicable rate) mill per kilowatt-hour. If the Board of Equalization fixes a new rate in l975, the electric utility shall notify its customers of the new rate at or prior to the time a billing is rendered to the customer subject to the new rate if the electric utility does not separately state the amount of the surcharge or print on the billing notice that the surcharge is included in the charges.

Section § 40021

Explanation

This law section states that if an electric utility collects a surcharge from consumers, and there's any part they don't return which isn't actually a surcharge but collected as such, the utility owes that money to the state.

The surcharge required to be collected by the electric utility, and any amount unreturned to the consumer which is not a surcharge but was collected from the consumer as representing a surcharge, constitutes debts owed by the electric utility to this state.

Section § 40022

Explanation

This law says that when an electric utility collects money from a customer for electricity that is subject to a surcharge, the money should be distributed proportionally. This means the payment should cover both the cost of the electricity and the surcharge the customer owes in relation to that electricity.

Any amounts collected by an electric utility from a consumer on account of the purchase of electrical energy the consumption of which is subject to the surcharge shall be applied proportionately between the liability of the consumer on account of the purchase of the electrical energy and the liability of the consumer for the surcharge.

Section § 40023

Explanation

Electric utilities don’t have to collect a surcharge on accounts that are considered worthless and have been written off according to standard accounting rules. If the utility already paid this surcharge, they can deduct the worthless amount from their taxes. But if they later recover any money from these accounts, they must pay the surcharge they collect with their next tax return.

The board can also establish further rules for handling such uncollected debts to ensure fair administration.

An electric utility is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts which have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the electric utility has previously paid the amount of the surcharge it may, under regulations prescribed by the board, take as a deduction on its return the amount found to be worthless and charged off. If any such accounts are thereafter collected in whole or in part the surcharge so collected shall be paid with the first return filed after such collection.
The board may by regulation promulgate such other rules with respect to uncollected or worthless accounts as it shall deem necessary to the fair and efficient administration of this part.

Section § 40024

Explanation

This law clarifies that if a person or company is under the Public Utilities Commission's jurisdiction, they don't need the Commission's permission to follow the rules in this part of the law.

Notwithstanding any other provision of law to the contrary, persons subject to the jurisdiction of the Public Utilities Commission need not obtain any authorization from the commission to comply with the provisions of this part.

Section § 40025

Explanation

This statute specifies that the rate determined by the board, according to a particular section, becomes effective for billing cycles starting from July 1, 1983, onwards.

The rate fixed by the board pursuant to subdivision (b) of Section 40016 shall apply with respect to billing periods beginning on or after July 1, 1983.