County of San Diego v. San Diego Gas & Electric Co.

On November 28, 1952, the county of San Diego filed an action for declaratory relief and an accounting for monies claimed to be due for the years 1947 to 1951, inclusive, for franchises granted by the county to defendant under the Broughton Act (Pub. Util. Code, §§ 6001-6017). That act fixed the payments at “. . . two percent (2%) of the gross annual receipts of the grantee arising from the use, operation, or possession of the franchise.”

Defendant serves all of San Diego County including several municipalities. It has two franchises from the county, one for electric lines and one for gas lines. It also holds franchises granted by the several municipalities.

Among the municipalities served by defendant are the *27 cities of San Diego, Coronado, and National City. These three cities are contiguous and for the purposes of this opinion are considered as one.

Defendant computed its payments to the county in the following manner: (1) it determined its gross receipts from the county alone, excluding all receipts from city consumers; (2) it apportioned county receipts between distribution property and all other operative property by means of an “investment factor,” a percentage figure…

I dissent. I agree with the reasoning in the opinion prepared by Mr. Presiding Justice Barnard for the District Court of Appeal in County of San Diego v. San Diego Gas & Electric Co. (Cal.App), 299 P.2d 664 .

Sehauer, J., concurred.

Respondent’s petition for a rehearing was denied March 20, 1957. Sehauer, J., and McComb, J., were of the opinion that the petition should be granted.