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Supervisor McParini seeks state law change to permit renegotiation of PG&E franchises granted in perpetuity
Summary
Supervisor McParini introduced a resolution requesting that the California Legislature allow cities to renegotiate perpetual franchise agreements, citing San Francisco's 1939 franchise with PG&E and a large gap between San Francisco's current franchise receipts and amounts some other cities collect.
Supervisor McParini asked the board to introduce a resolution urging the California Legislature to reform state law to permit local jurisdictions to renegotiate franchise agreements that were granted in perpetuity. McParini said San Francisco’s franchise with Pacific Gas & Electric traces to 1939 and sets rates at 0.5% for electric sales and 1% for gas sales, figures he described as unchanged for more than 70 years.
McParini contrasted San Francisco’s franchise percentages with the City of Berkeley, which he said charges 5% for electricity, and told the board such a rate could yield “about $50,000,000 a year” for San Francisco. He stated current annual franchise revenue to the city as approximately $3.1 million for gas and about $3.5 million for electricity, and argued the legislature should permit statutory remedies to set expirations and limit future contract durations.
The resolution was introduced on the floor for the board’s consideration and referral; no final board vote took place at the meeting.
Context McParini framed the request as correcting a long-standing imbalance that limits local control over utility franchise terms and local revenue options. The item requests state-level action; the resolution does not itself change any local law but asks the legislature to consider statutory authority for renegotiation or expiration of perpetual franchise agreements.
