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HomePublic Utilities CodeDiv. 1Pt. 1Ch. 4Art. 10§ 890 Natural Gas Surcharge Funding

§ 890 Natural Gas Surcharge Funding

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

§ 890 Natural Gas Surcharge Funding

Key Takeaways

  • •There is an extra fee on all natural gas used in the state to help pay for programs that assist low-income families and promote energy efficiency.
  • •Gas companies collect this fee from customers and send it to the state.
  • •The fee is shown as a separate charge on your gas bill.
  • •The amount of the fee can change every year based on how much money is needed for these programs.

Example

You use natural gas to heat your home and cook food.

Every month, you will see an extra charge on your gas bill. This money goes to help people who can't afford their gas bills and to support programs that save energy.

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

Official Source
View on CA.gov

§ 890 Natural Gas Surcharge Funding

(a) On and after January 1, 2001, there shall be imposed a surcharge on all natural gas consumed in this state. The commission shall establish a surcharge to fund low-income assistance programs required by Sections 739.1, 739.2, and 2790 and cost-effective energy efficiency and conservation activities and public interest research and development authorized by Section 740 and not adequately provided by the competitive and regulated markets. Upon implementation of this article, funding for those programs shall be removed from the rates of gas utilities. (b) (1) Except as specified in Section 898, a public utility gas corporation, as defined in subdivision (b) of Section 891, shall collect the surcharge imposed pursuant to subdivision (a) from any person consuming natural gas in this state who receives gas service from the public utility gas corporation. (2) A public utility gas corporation 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 public utility gas corporation has previously paid the amount of the surcharge it may, under regulations prescribed by the State Board of Equalization, take as a deduction on its return the amount found to be worthless and charged off. If any accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after that collection. The commission may by regulation promulgate other rules with respect to uncollected or worthless accounts as it determines to be necessary to the fair and efficient administration of this part. (c) Except as specified in Section 898, all persons consuming natural gas in this state that has been transported by an interstate pipeline, as defined in subdivision (c) of Section 891, shall be liable for the surcharge imposed pursuant to subdivision (a). (d) The commission shall annually determine the amount of money required for the following year to administer this chapter and fund the natural gas related programs described in subdivision (a) for the service territory of each public utility gas corporation. (e) The commission shall annually establish a surcharge rate for each class of customer for the service territory of each public utility gas corporation. A customer of an interstate gas pipeline, as defined in Section 891, shall pay the same surcharge rate as the customer would pay if the customer received service from the public utility gas corporation in whose service territory the customer is located. The commission shall determine the total volume of retail natural gas transported within the service territory of a utility gas provider, that is not subject to exemption pursuant to Section 896, for the purpose of establishing the surcharge rate. (f) The commission shall allocate the surcharge for gas used by all customers, including those customers who were not subject to the surcharge prior to January 1, 2001. (g) The commission shall notify the State Board of Equalization of the surcharge rate for each class of customer served by an interstate pipeline in the service territory of a public utility gas corporation. (h) The State Board of Equalization shall notify each person who consumes natural gas delivered by an interstate pipeline of the surcharge rate for each class of customer within the service territory of a public utility gas corporation. (i) The surcharge imposed pursuant to subdivision (a) shall be in addition to any other charges for natural gas sold or transported for consumption in this state. Effective on July 1, 2001, the surcharge imposed pursuant to this article shall be identified as a separate line item on the bill of a customer of a public utility gas corporation. (j) Notwithstanding subdivision (a), public utility gas corporations shall continue to collect in rates those costs of programs described in subdivision (a) of Section 890 that are uncollected prior to the operative date of this article. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)

Last verified: January 23, 2026

Key Terms

corporationsurchargeregulationliabilityutilitycommissionportfine

Related Statutes

  • § 891 Gas Utility Definitions
  • § 740.19 Electric Vehicle Charging Infrastructure
  • § 829 Public Utility Regulation Exemptions
  • § 892.2 Quarterly Gas Consumption Returns
  • § 2889.9 Telephone Billing Misrepresentation Ban

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 890.
View Official Source