County of Alameda v. Pacific Gas & Electric Co.
Opinion
Opinion
Mihara, J.
In 1971, the California Legislature enacted Public Utilities Code section 6201.5 which, for the first time, authorized counties to use the franchise-granting provisions of the Franchise Act of 1937. In this case we hold the enactment did not change the franchise fee formula contained in preexisting county franchises granted under the Broughton Act.
Statutory Background
Prior to 1937, the Broughton Act, enacted in 1905 and codified in chapter 1 of division 3 of the Public Utilities Code, sections 6001-6092, was the only statutory scheme for counties and most cities of California to use to grant utility franchises and enter into franchise contracts. The scope of franchises granted under the Broughton Act is set forth in section 6001. The Broughton Act prescribes procedures for notice and a public auction whenever a county or city proposes to grant a utility franchise under its terms. (See §§ 6005 [advertisement for bids must be published and state that franchise will be awarded to highest bidder], 6006 [bid advertisement must state character of franchise, duration and payment formula], 6007 [describing public auction process].)