Calif. Municipalities Say PG&E Illegally Diverts Taxes

Law360 (July 22, 2020, 10:43 PM EDT) -- The city and county of Sacramento and 14 other California cities sued Pacific Gas and Electric Co. in state court Tuesday, claiming the utility is illegally diverting millions of local government taxes annually and using the scheme to reward its largest customers and subsidize the price of its service.

Sacramento County and the cities allege PG&E engages in the tax diversion at their direct expense by lowering the local taxes the utility is required to charge customers by giving them pre-tax state credit for rebates they receive for reducing their power consumption.

PG&E is not authorized to interpret the local tax...

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