Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Bruce DeBerry is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The Franchise Act and the Broughton Act establish formulas for payment of fees to municipalities.

2. Charter cities are permitted to negotiate franchise fees in excess of the formulas under the Franchise Act or The Broughton Act.

3. Ventura is a charter city.

4. During negotiations for a new franchise agreement Ventura proposed a franchise fee increase.

5. The new franchise agreement would increase franchise fees by an additional 1% of gross revenues

6. The new franchise agreement will surcharge Ventura ratepayers located within Ventura's city limits an additional 1% applied to monthly billings.

7. The additional franchise surcharge will total in approximately $246,000 annually.

8. The additional franchise surcharge will raise average residential monthly bills by $0.44, and raise average monthly bills for all customer classes by $0.58.

Conclusions of Law

1. As a charter city, Ventura is permitted to negotiate franchise fees or taxes in excess of the Franchise Act and Broughton Act formulas.

2. It is appropriate and reasonable that those significantly higher franchise fees should be borne only by the ratepayers in the local governmental area that originated them.

3. There are no disputed issues of fact and therefore hearings are not required.

4. Since no one objected to the Application and this decision grants the relief requested, public review and comment are waived pursuant to Pub. Util. Code § 311(g)(2).

5. In order that the benefits from the new franchise agreement are realized as soon as possible, this decision should be effective today.

6. A.07-04-027 should be closed.

ORDER

1. Southern California Gas Company (SoCalGas) is authorized to surcharge the bills of customers in the City of San Buenaventura as requested in SoCalGas' application.

2. This order is a final determination that a hearing is not needed in this proceeding.

3. Application 07-04-027 is closed.

This order is effective today.

Dated October 18, 2007, at San Francisco, California.

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