PG&E pays Campbell nearly a half million in fees
By Moryt Milo
Campbell will receive nearly a half million dollars from the beleaguered Pacific Gas and Electric Company (PG&E) in franchise fees this month.
PG&E announced last week it was paying the city of Campbell a little more than $419,000 in franchise fees, which is part of the $145 million in fees the company is paying to 290 cities and counties.
The franchise fee is a percentage of the gross receipts that PG&E pays cities and counties for the right to use public streets to run gas and electric service, said PG&E spokesman Jeff Smith.
"It seems odd that this information went out in a [press release]," said Campbell Director of Finance Gretchen Conner, who has worked for the city for 11 years.
PG&E has never been that public about their payments in the past, Conner said. It's probably related to the company trying to repair its image.
Smith admits, that after last year's bankruptcy filing and deregulation woes, the company is trying to be proactive within local communities and show its commitment to cities and counties that depend on franchise fee revenue.
"The company wanted to specifically inform the communities of the amounts being returned," Smith said. "It's the company's way of [reaching out] at the local level."
In Campbell, the franchise fees are used to offset police, public works, recreation, community development and city administrative costs, Conner said.
The city also receives franchise fees from the San Jose Water Company, cable companies, and Green Valley Waste Disposal Co., but PG&E is the largest payer.
The franchise fee is part of the city's annual budget, Conner said. For the 2002-'03 fiscal year the city's general fund was $28.5 million. Although the franchise fees are a small portion, they have been factored into the budget for decades, Conner said.
"We receive these fees annually," she said. "It is not a one-time windfall."
Last year the amount was less, approximately $335,000, but higher energy costs, weather-related use--hotter summers and colder winters--and more local construction are all possible reasons for this year's rise in fees, Conner said.
The city budget estimates the fees each year based on history information and anticipates receiving the fees by April 15.
Campbell, California
