California Manufacturers Association

24 Cal. 3d 836 (1979), 598 P.2d 836

The Court reversed a Commission decision that ordered local distribution companies (SoCal Gas, PG&E) that had received refunds from gas suppliers not to distribute the refunds to prior or existing customers based on prior usage. The Commission instead ordered that the refunds be employed to reduce the level in a gas cost “balancing account,” which have the effect of reducing future rates to current customers. The Court’s decision concluded that the Commission’s method of distributing the proceeds of the supplier refunds violated Section 453.5, the statute at issue in State Assembly (Para. 35).

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