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COALITION FOR LOCAL POWER

Subject: Estimated Value of PG&E's Property in the Yolo Annexation Area is $92 Million

June 2, 2005

TO: SMUD staff, directors, Yolo officials, and annexation activists, and others
FROM: Dan Berman

RE: $167,573,212: Estimated Value of PG&E property in Yolo County, using Board of Equalization figures and PG&E property tax payments

According to an April. 12, 2005 press release, PG&E paid $84,952,166.46 in California property taxes, of which $941,525.79 or 1.10 percent were paid to Yolo County.

According to the Board of Equalization, the total value of PG&E Co.'s property in California on Jan 1, 2005 was $15,202,300,000. Multiply this $15.2 billion by 0.0110 (1.10%) and you come up with $167,573,212 for the value of PG&E property in Yolo County. 

To get the value of the property to annexed, you have to subtract the value of the gas properties (minus 25%), subtract the value of the bill processing facility in West Sacramento, the value of the 27.5-acre property on 5th and L Streets in Davis which services PG&E heavy equipment from Davis to the Oregon border, and perhaps similar properties in Woodland. Then subtract the value of PG&E's Yolo electricity properties outside of Davis, West Sacto, and Woodland (minus 20%). Now we're down to $92.3 million (55% of $167.6 million) for the "Historical Cost Less Depreciation" which is the method the Board of Equalization uses to set value for utility property. Meanwhile PG&E is claiming in advertisements that the property in the annexation area is worth $500,000,000.

Dan Berman

PS: Franchise fees are another issue; apparently Davis received about $350,000 and Woodland $250,000 in 2004 based on electricity franchise fees of 1.0% of gross electricity---but West Sacto received more, because, apparently West Sacto gets a higher percentage of gross revenues....