County of Kern v. Pacific Gas & Electric Co.

This appeal questions the validity of county ordinances which purportedly granted indeterminate gas/electric franchises to respondent. Originally, appellant questioned the propriety of respondent’s method of calculating the “gross annual receipt” base from which franchise fees are taken. Subsequent to the filing of this appeal, however, the parties agreed to removing consideration of all issues relating to this claim. Thus, we only consider the contention about the validity of the perpetual franchise grants.

San Joaquin Light and Power Corporation (hereinafter SJL&P) and Coast Counties Gas and Electric Company (hereinafter Coast Counties) were awarded certain gas franchises through county ordinances, which were adopted by the County of Kern (hereinafter County) between the years 1909 and 1940. SJL&P was merged into Pacific Gas and Electric Company (hereinafter PG&E) on December 31, 1938, and the latter company took over operation of several SJL&P franchises. On August 31, 1954, Coast Counties merged into PG&E, who operated one of Coast Counties’ franchises until 1957.

Pursuant to the Broughton Act and Government Code section 26001, the board of supervisors of County…