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HomePublic Utilities CodeDiv. 3Ch. 2.5Art. 3§ 6353 Energy Surcharge Calculation Rules

§ 6353 Energy Surcharge Calculation Rules

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 6353 Energy Surcharge Calculation Rules

Key Takeaways

  • •This law explains how to calculate an extra fee (surcharge) on gas or electricity bills.
  • •The fee is based on how much gas or electricity you use and the average cost of that energy.
  • •The company adds the fee only at the final delivery point (like your home or business).
  • •The fee includes a franchise fee and any extra charges approved by the government.

Example

You get your monthly electricity bill, and there’s an extra charge on it.

The company calculates this extra charge by looking at how much electricity you used and the average cost of electricity. Then they add a small fee on top of that.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 6353 Energy Surcharge Calculation Rules

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 municipality. (e) The surcharge assessed pursuant to this chapter only applies to the end use point. (Amended by Stats. 1998, Ch. 485, Sec. 138. Effective January 1, 1999.)

Last verified: January 23, 2026

Key Terms

surchargeagreementelectricitycommissionportsubscriptionutilitymunicipality

Related Statutes

  • § 6351 Energy Transporter Definitions
  • § 434 Public Utility Reporting Requirements
  • § 6350 Utility Energy Surcharge Replacement
  • § 6352 Energy Transportation Surcharge Rules
  • § 532 Public Utility Rate Compliance

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 6353.
View Official Source