8. Fees
Whenever the Commission authorizes a utility to issue debt, the Commission is required to charge and collect a fee in accordance with Section 1904(b), which states, in relevant part, as follows:
Section 1904(b): For a certificate authorizing an issue of bonds...two dollars ($2) for each one thousand dollars ($1,000) of the face value of the authorized issue or fraction thereof up to one million dollars ($1,000,000), one dollar ($1) for each one thousand dollars ($1,000) over one million dollars ($1,000,000) and up to ten million dollars ($10,000,000), and fifty cents ($0.50) for each one thousand dollars ($1,000) over ten million dollars ($10,000,000), with a minimum fee in any case of fifty dollars ($50). No fee need be paid on such portion of any such issue as may be used to guarantee, take over, refund, discharge, or retire any stock, bond, note or other evidence of indebtedness on which a fee has theretofore been paid to the commission. (Emphasis added.)
We conclude that Section 1904(b) applies to the Energy Recovery Bonds, as there is nothing in SB 772 that exempts the Bonds from Section 1904(b). The following table shows the calculation of the fee required by Section 1904(b):
Step 1: Amount of Debt on which the Fee is Owed |
|
Energy Recovery Bonds Authorized by this Order |
$3,000,000,000 |
Less: Use of Bond Proceeds to Retire Long-Term Debt Authorized by D.02-11-030 and D.04-01-024 1 |
($1,600,000,000) |
Less: Use of Bond Proceeds to Retire Common Stock Authorized by D.93-06-083 2 |
($1,175,000,000) |
Net Debt Subject to Fee |
$225,000,000 |
Step 2: Computation of Fee |
|
Fee on First $1 Million |
$2,000 |
Fee on $2 Million - $10 Million |
$9,000 |
Fee on $10 Million to $225 Million |
$107,500 |
Total Fee |
$118,500 |
Note 1: PG&E paid the Section 1904(b) fee pursuant to D.02-11-030 and D.03-04-035. Note 2: PG&E paid the Section 1904(b) fee pursuant to D.93-06-083. | |
PG&E shall remit the required fee of $118,500 to the Commission's Fiscal Office no later than 10 days after all conditions for the issuance of the Bonds have been satisfied and, in any event, prior to the issuance of the Bonds. The SPE shall reimburse PG&E for this fee.
