§ 775 Utility Fuel Oil Profit Credit

Public Utilities Code·California

AI SummaryVerified

Key Takeaways

•If a gas or electric company sells fuel oil for more than they paid, they have to give back the extra money with interest.
•This only applies if the fuel oil is used for their main job (like making electricity or gas for people).
•The company can't keep the extra money they made—they have to use it to lower what they charge customers later.

Example

A gas company buys fuel oil for $100 but sells it for $120 to make electricity.

The company has to give back the $20 extra they made (plus interest) to customers by lowering their bills later.

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

Official Source

View on CA.gov

§ 775 Utility Fuel Oil Profit Credit

Whenever an electric or gas corporation sells fuel oil which is, or is reasonably expected to be, useful in the performance of its public utility function, at a price higher than the electric or gas corporation’s purchase cost, the commission shall, in any rate proceeding, require that the amount higher than the purchase cost be credited with interest against the expense claimed by the electric or gas corporation. (Added by Stats. 1976, Ch. 1360.)

Last verified: January 23, 2026

Key Terms

corporation performance claim commission utility function

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 775.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References